When do you need self-build insurance?
The moment you purchase a site you become responsible for what happens on it, so if anyone is injured on your land they can make a claim against you. This risk means most mortgage providers will require proof of at least fire only site insurance before releasing funds.
A new build is generally a property that has never been occupied. Even with extensive works, renovated or converted properties are not classified as new builds. This distinction can influence the terms of your policy, so it is important to confirm the classification of your property.
While some alterations and refurbishments are typically allowed under standard home insurance policies, anything more complex – be it a kitchen upgrade or a garage conversion – should be fully explained to your insurer.
Large extension projects can increase the risk of accidental damage, theft, and liability claims. Some insurers may continue coverage during smaller building works, but for larger projects, such as an extension, conservatory or loft conversion, additional cover may be required. Always check with your insurer before work starts to avoid invalidating your policy.
If you’re living in your property while work is taking place, insurers will usually want to know:
- The type of work being carried out
- The project value
- How long the work will take
- Whether contractors are being used
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OUR ADVICE
Skip the week of phone calls. Use a broker.
OPTION 1 · THE HARD WAY
Going direct
We spent a full week calling insurers. Most don’t sell self-build cover to consumers, and the ones that do often have limited options.
OPTION 2 · THE EASY WAY
Going through a broker
Brokers can reach specialist underwriters, which gives you a much wider choice of cover than you’ll find going direct.
What does a typical policy cover?
Cover levels tend to vary between insurers, so before purchasing it is important to review your home insurance policy carefully for any exclusions and limits.
A standard policy might include:
Fire, lightning, explosion cover
Storm & flood protection
Depending on your needs, your policy might also include:
- Accidental damage to the property
- Cover for building materials
- Theft of tools, plant, and equipment
- Public liability cover if a third party is injured on site
- Employers’ liability risks if hiring labour
How much does it cost?
The cost of self-build insurance will vary depending on your location, build stage, construction type and individual circumstances.
When budgeting, it’s best to allow for a guide price of €400 for the most basic level of protection, and upwards of €1,000 for more comprehensive cover.
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Who offers self-build insurance in Ireland?
While Aviva, Redclick, Allianz, Zurich and 123 were unable to provide a quote, we were able to get quotes from AXA Insurance and FBD Insurance for varying levels of cover for a detached four-bedroom self-build property in Co. Meath with an estimated rebuild cost of €340,000.
AXA Self-Build Insurance
Premium: €410
Excess: €1,000
- Early-stage construction cover is restricted to loss or damage to the property by fire.
- AXA will generally only provide a quote once construction is about to begin and foundations have been laid.
- Cover is limited depending on the stage of the build, but can be extended as the build progresses. Once the roof, windows and doors are installed, additional protection may be added.
- No liability cover while the property is under construction.
FBD Self-Build Insurance
Premium: €447
Excess: €250 standard (€750 water damage, €1,000 subsidence)
- During construction, cover is limited depending on the stage of the build.
- Early-stage cover is restricted mainly to fire, explosion, lightning and earthquake.
- Once the roof, windows and doors are installed, storm and flood cover are added.
- No cover for building materials stored on site.
- No liability cover included, but FBD’s Self-Build Liability Insurance can be added to your policy.
FBD Self-Build Insurance (Comprehensive Plus)
Premium: €665.90
Excess: €250 standard (€750 water damage, €1,000 subsidence)
- Includes enhanced construction-stage cover.
- Covers theft of building materials stored on site.
- Covers theft of plant, tools and equipment up to €12,500 per claim.
- Covers theft of contractors’ tools and personal belongings up to €500 per person.
- No liability cover included, but FBD’s Self-Build Liability Insurance can be added to your policy.
FBD Self-Build Liability Insurance
Premium: €1,300
Employers’ liability: Provides a limit of indemnity of €13,000,000 for any one event, and offers an unlimited aggregate during the period of insurance.
Public liability: Provides a limit of indemnity of €2,600,000 for any one event, and offers an unlimited aggregate during the period of insurance.
Top Tip: Self-build policies can vary dramatically, so comparing premiums without understanding what is covered can be misleading. Always read the fine print before choosing your policy so you can find the best protection for your build.
Frequently asked questions
Professional builders should have their own insurance, but not all do. It’s important to check for proof of your builders’ insurance coverage.
Their insurance generally protects their business, employees and equipment, but may not cover your building materials, partially completed works or your overall project.
Your policy should cover you until the build is complete and you are ready for standard home insurance.
Most policies will cover you for 12 to 24 months, depending on the extent of the work. If your project takes longer than expected, you will be able to extend your cover at an additional cost.
No, self-build insurance is not legally required. However, many mortgage lenders will ask for proof of coverage before work begins.
Once construction is finished, you can switch to a standard buildings insurance policy and add contents cover.
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