Safety from Financial Losses with a Property Developer Insurance

Posted by SELF BUILD INSURANCE on July 25th, 2022

Property development is risky business which is why you are advised to take an insurance to cover all pitfalls.  That way you are assured of financial stability and peace of mind even if your calculations go wrong.  Taking property developer insurance protects the development you are undertaking to improve the value of your property. A developer insuranceis helpful when you wish to have a renovation, a self-built project, or a conversion or extension project. This insurance will cover any losses that you may suffer due to your public liability or due to damage to plant and machinery that is used on your site.  It even covers you for any damage to adjacent properties due to the activities on your property.

Do Your Research

Before you go looking for a property developer insurance, you should be aware of what you need to cover.  Good research and/or suggestions from people in the business will help you to discover for yourself what kind of coverage you need.  Insurance companies have different packages to cover different eventualities and so it is important that you choose one that is able to cover the unique needs of your project.  Cover can be provided if the project overruns or if the project is completed before schedule.  Insurance cover can also be given if there is a delay in the start of the project and you only need land liability cover.

Public Liability Protection

Property developer insurance will cover you from all public liability, even from claims from intruders who are injured on your property.  You have to protect yourself in case the work on your property causes damage to surrounding buildings or causes loss of life and limb to people on your property.  In fact, the JCT Clause 6.5.1 protects you even if damage is caused by the contractors or sub-contractors working for you.  You may be unaware of height restrictions or inability to develop certain areas because of restrictive covenants applied by previous owners; this insurance will protect you if something like this turns up.

Safety From Defective Title Deeds

Property developer insurance also provides protection from defective titles.  All the title deeds of a property are required to complete legal paperwork, however, if anything is lost or misplaced, it could put a stop to all developmental work on your property.  A shutdown could be very costly for you and may lead to great financial losses if you are not covered by this insurance.  You could be unaware of denial of access, rights of way, or easements that are mentioned in the title deeds that again could put a stop to your work.  This is the right insurance for all such eventualities.

Keep Information Ready

Before approaching an insurance company for a developer insurance, make sure that all documents and information is ready for submission.  This may include information such as when the business was started, your experience in this business, insurance renewal dates of previous insurance, financial estimates, information about any claims made on you in the recent past, and the like.  You will also need to give adequate information about the project that you are undertaking.