Financial Protection with A Property Developer Insurance

Posted by SELF BUILD INSURANCE on August 17th, 2022

Property developer insurance is necessary for all developers who are involved in development projects such as a new build, conversion, or renovation project.  Property development is lucrative but also quite risky and hence developer insurance is needed.  It is therefore important to get this insurance to protect yourself from any unexpected delays or catastrophes.  You will be protected financially from any accidents or injuries on site or any subsidence issues that could prove quite costly if you are not adequately protected.  A well-established insurance company will be able to guide you on the kind of insurance you should take when you enter the property development business.

Get The Best Price

It is important that your property developer insurance provides you with the most appropriate and exhaustive cover but also at the best price.  The type of care you choose will depend on the amount of risk involved and the nature of the project.  Property developer insurance is available for all home builders, construction companies, property developers, and contractors who are involved in developing properties.  These properties may be for their own use or to be rented out or sold when completed.  This insurance holds good for all who are involved in renovations and adding extensions to make a property bigger and more valuable.

Safety From Financial Ruin

If you are the developer, you must ensure the building that is under construction.  Failure to do so could result in great financial ruin and you being held liable for employer’s liability.  Having the property developer insurance will cover your legal costs and all public liability.  The permanent and temporary works on your site will be covered as well as all building fixtures and fittings.  If there is a delay in the completion of the project for whatever reason, this insurance will cover you for loss of potential rental income from the completed property.  It will also cover your loss of mortgage interest that happens because of the delay in the project.

When To Get It?

The developer insurance must be obtained as soon as you purchase the property for commercial or other development.  Going to an experienced and reputed insurance company will ensure that you get the most fitting cover for your project.  The insurance company will need information such as the start date of the project and the expected finish date.  They will want to know the scope of the build and what kind of project it is.  Other information they will require includes the building material that is going to be used, the plant and machinery cover that you will require, and the liability requirements.  Giving them the required information will help them to finalise a cover that is comprehensive and cost effective.

Make An Informed Decision

Reputed insurance companies will also answer any doubts that you may have about whether you need to take the insurance if you are hiring the services of a contractor.  A property developer insurance will cover you in the event that there is confusion about the ownership of an accident or incident and the buck is passed on to the site owner and not the contractor.  The experts at insurance companies will also get you a bespoke insurance quote.