5 Insurances for builders & what to look out for

Especially with a big project like building a house, there are some risks. Whether the construction is delayed, the costs exceed the estimated budget or things go wrong. These risks should not be supported by builders and therefore some things are important before the start of construction, so that no nasty surprises come your way.

Insurance for house construction – for your safety

Most people are not aware that builders are generally liable for damage and accidents regardless of actual fault. Some insurances must therefore be taken out in advance to protect against risks so that the dream of owning your own home does not become a nightmare. But which insurances are obligatory to take out before the start of construction so that you can protect yourself?

Builder’s liability insurance – protection against accidents

Although your home is normally built by an external company, you are still liable for any damage caused by the construction site. If the excavation pit is not properly secured and a child falls in and breaks an arm, you are liable for the damage, even though it was not your fault. As the builder, you are legally obligated to ensure that the construction site is safe and to restore it if necessary. Private liability insurance does cover such damage, but only for very small construction sums up to 50,000 euros. In the case of a conversion or modernisation, this sum is sufficient, but you cannot build a new building from it. Therefore, protect yourself in advance with a so-called builder’s liability insurance. This takes over such damages and covers a building sum of usually 250,000 – 300,000 euros. Better be on the safe side, because an accident can happen faster than you think. Even if you have convinced yourself of the safety, you are probably not a professional and cannot assess the risk that exists. So that you do not expect any unpleasant surprises, take out the insurance before you start building.

Fire shell insurance – 2 in 1 insurance

Since the construction of a house usually takes a few months, the shell is exposed to a fire hazard. Damage to the shell by fire, lightning strikes or even explosions can cost the builder several 10,000 euros and delay the construction enormously. A lightning strike which causes a fire can lead to the fact that with the house building again completely from the beginning must be started. A bad idea, which is unfortunately more often reality, than one thinks. So in order to protect yourself as a builder against this danger, there is the fire shell insurance. With a normal house such damages would be covered by the building insurance, but not with a shell construction. Many insurance companies therefore offer fire shell insurance, which transfers directly to home insurance once the build is complete. A very good deal, then, in which you can cover many insurance claims during and after construction with one insurance policy. However, such insurance is not only important for you for financial and security reasons, but is also often required by banks in the loan, so that the construction loan is approved at all.

Construction work insurance – additional protection

A supplement to the fire shell insurance is the building performance insurance, because this takes over further cases that are not included in the fire shell insurance. Here, cases are insured, such as storm or flood damage, but also vandalism or construction and material defects are included. If materials are stolen from the building shell or if there is a riot in the building shell or things are broken into and destroyed, the building performance insurance will pay for the damages. These cases also happen more often than expected and it is better to protect yourself against them and play it safe than to run the risk of incurring additional costs.

Construction worker accident insurance – Insurance for helpers

When finishing the interior of the house, many builders rely on construction helpers, who can be friends or acquaintances, to save money. Acquaintances, family and friends who have experience in the field and know a thing or two about interior finishing are happy to help and thus facilitate the budget of the builder. However, it becomes problematic if the construction helpers get injured. If someone falls off a ladder or injures themselves with a tool, the first question is what insurance will cover it. In professional construction companies, the workers are covered by public liability insurance and accidents or injuries are covered by this. With construction workers, this is not the case and legally, the builder is liable first for accidents that happen in his home. Depending on the accident there can be huge costs to builders that were not factored in. So, anyone who is thinking of saving construction money by enlisting the help of friends or acquaintances to help with the interior work should consider in advance whether construction worker’s compensation insurance is not an option that should be used. It is better to invest a little money in insurance than to run the risk of being liable for damages yourself.

Liability insurance for land – Insuring against construction delays

Before the construction of a house can begin, a suitable plot of land must first be found. Since the plot is usually the first thing that is acquired, it is also the area that stands empty the longest. So, due to construction delays or the like, the already purchased plot is sometimes empty for months. Nevertheless, you are the owner and as the owner you have obligations that you must follow even if you are not yet using the property or living on it. For example, as the owner, you are required to shovel snow and clear and grit the sidewalks in the winter. If you don’t do this and someone slips and is injured, you are liable for the damage that occurs on your property. So take out liability insurance for your property when the start of construction is delayed or when there is a risk of such damage, for example when building in winter.

Compare insurances – find the best offer

In order to protect yourself from risks and additional costs besides the enormous costs for your own home, you should therefore consider some insurances that make sense for you depending on your life situation and house construction. Before you take out these insurances, however, you should find out exactly what is really included in the respective insurance and which offer is the best for you. Both online and with consultants, you can compare different insurance with each other and thus increase your chance of a cheap insurance. Even if the benefits of different insurance companies are usually similar, the insurance premiums differ enormously, which is why it is worth looking closely and compare. So play it safe, compare insurances and find the perfect one for you that can protect you from all possible risks and unexpected expenses.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.