The home of your dreams is being built. Your new-build property is taking shape. You think everything is on track and on time and then disaster strikes.
Maybe you have to sack your builders because their work is not up to standard. Maybe your incomplete dream home is now just an unoccupied building site where nothing is happening because of an unforeseen delay.
Disasters such as these do happen. However, if you talk to your insurers about these, and other potential disasters, before they occur, there is a good chance you can avoid some of them and mitigate the consequences of the majority of the disasters that could occur.
When Builders Fail To Deliver
Before you start work on your new-build project, talk to the building company about the insurances they hold and to your insurers about performance bonds. Performance bonds are of interest to you because they offer you some protection if your builder fails to fulfil obligations set out in the contract between you. A performance bond will protect you against monetary loss up to the amount specified in the detail of the bond. Thus, if your builder does not complete work as specified in the contract, you can end the business relationship, choose another builder and continue your building project without suffering a major monetary loss.
When Your New-Build Project Stalls
If work on your new-build project stops for any reason, you will think immediately about the costs of the delay and about the impact of the stoppage on your schedule. However, once the builders leave, you become responsible for the site.
If the partially completed property burns down, or if it is vandalised, you may be expected to bear the costs.
Before work stops, therefore, speak to your insurers about insuring your site for the period when no one will be working on it.
Will Disaster Strike Your New-Build Project?
You can never be sure what is going to happen during the life of a building project. However, you can consult an expert to find out how likely you are to encounter problems.
According to Chrissie Jenkins, Managing Director at Country Life Insurance Brokers, people building their dream home are likely to encounter significant problems in six projects out of every hundred. They are likely to face really major problems, such as the insolvency of their builder, or the need to ask their builder to leave the project before the work is complete, in two or three projects in every hundred.
“It is not inevitable that you will experience problems with your new-build project, but problems occur often enough for you to take the possibility into account at the planning stage. Talk to your insurers about the specific insurance requirements of your project before work starts.”
Chrissie Jenkins, Insurance Expert At Channel 4’s Grand Designs
The Grand Designs Show Live in London from 3rd May, 2014 to 11th May, 2014 will bring a panel of experts together to help you to get your building or renovation project right. Book a free half hour’s consultation with Chrissie at Grand Designs.
If you miss Grand Designs visit Country Life Insurance Brokers website to learn more about how Chrissie and her team can help you to find the right insurance for your property and advise you on how to avoid a new-build disaster.