Property Developer Insurance
Whether you are a well-established property developer or someone starting a renovation project for the first time – do you know what property developer insurance is and why you should have it? In case you don’t here is a quick overview to help you.
What is property developer insurance?
Whether you are developing one property or lots of properties, experienced property developers know that even the best planned development can have things which go wrong or cause delays. Issues can arise which were not expected, such as an accident or injury on site to you, your employee or your contractor or the building may become damaged by a contractor and leave you months behind with a huge additional bill for repairs.
Why should you take out property developer insurance?
Property developer insurance is not just for developers – it can be taken out by people who are building their own home or by contractors or construction companies who plan to sell or rent the properties once they are completed. It is applicable to new builds and also any type of work you begin on a building such as extensions, property conversions and renovations.
No one begins this type of work without some expected benefit – whether that is making money or having a better home to live in once the work is complete. Property developer insurance is there to cover the possibility that the initial plan doesn’t work out because something prevents it and as a result you either lose money directly because something needs fixed or you lose time and this impacts you financially. It is also there to cover any potential liability that may fall to you if your contractor does something that they shouldn’t.
Many people borrow money to develop a property or undertake renovations. What if your planned three month project becomes a three year project because of something unexpected? The interest alone would cripple the project, let alone the cost of fixing the unexpected issue. This is why property developer insurance is essential.
What does it cover?
So what kind of unexpected things can you get cover for? Basically you want cover for anything which could cost you extra money. This could be things like:
- An injury on site to you, your contractor or a member of the public
- Loss of rental income due to delays with the works
- Legal expenses
- Unexpected additional work needed on site – whether temporary or permanent
- Costs of repairs to the building or it’s fixtures and fittings
- Additional costs due to the delay such as additional interest charges due to a delay in selling or completing the renovation.
Where can you buy property developer insurance?
You should always ensure that you take out property developer insurance before you start the work to make sure you are covered throughout your project. While you can buy property insurance cover online, it is better to make sure you work through a broker with expertise such as Property Insurance Centre to ensure that you get the correct cover. Property developer insurance is a specialist area and you don’t want to spend money on insurance which subsequently turns out to be inadequate when you need it. Talk to our new business team today on 0800 085 3761 about your property development plans and they get you the best cover and price available.