Just the decision to take the task of building a home into your own hands can be daunting, keep aside the fact that liabilities are now yours alone to deal with. The joy of being there every step of the way and having a say in every brick, beam, and wall comes with a lot of responsibility. The smallest of injuries on site to a worker, accidental falls, natural disasters and other unforeseen circumstances can put your budget off by thousands of dollars.
Time is a factor as well, having the plan pushed back by weeks, if not months; time and money that you cannot get back. Such accidents are what makes it prudent for you to invest in structural insurance, warranty and legal coverage for all the essentials.
Structural insurance functions within the parameters of Builders Insurance and Site Insurance. It covers claims with regards to the foundation and architectural framework of the building, as well as the integrity of the site it is built on.
As the percentage of self-built homes increase in the US, numerous companies now offer a comprehensive list of structural insurance for homes built without the assistance of building agencies.
If narrowed down to just structural claims, structural insurance covers the claim of any structural defects in a home for a fixed number of years after it is built. Often certain companies have a secondary set of rules, pertaining to the fact that the claim will only kick in 7 to 10 years after the house is completed.
That being said, structural insurance usually comes hand in hand with site and builders insurance as well, both essential and usually synonymous with structural insurance.
Site insurance is offered to builders as well as individuals who have purchased land and intend to construct. It not only covers any natural disaster-related damage –fire, storm, flood– to the land, but also the temporary structures on it. The coverage puts aside a certain sum to take care of any unforeseen circumstances that may cause huts, caravans, tools and the building under construction itself to be partially or wholly damaged.
Certain insurance companies not only take care of the monetary side of things but also offer services to clean, repair and bring back the space to its former state.
In recent times, Builder’s Insurance has become a must for self-built structures, especially since it establishes a sense of trust between the homeowner and the bank or builder who is offering monetary assistance.
Builder’s insurance acts as the umbrella under which site and structural insurance fall, but often companies do cater to individual needs by offering them separately. These insurance policies even accommodate for theft of tools and valuables from the site, but usually, put a limit of the claim. That being said, it is important to pick appropriate coverage plans and not under or over-insure your property.
Allowing delays and pushbacks, any building or structural insurance for individuals who are constructing on their own extend to 18 months, as opposed to the usual 12-month coverage given for builders.
Building a home isn’t only about the structure and integrity. Along each step of the way, you have to be aware of not only accidents and loss that are beyond your control, but also any harm that the process may cause to workers, the public and adjacent private and public property.
As a homeowner, you are liable if any of your workers are injured during the course of construction, or even if they fall ill due to toxic substance exposure while they worked for you.
Even a trespasser walking into property can have a legal claim if he or she is injured due to any improper construction methods.
Damage to surrounding property can be another reason you are faced with a very large bill for compensation. Everything from a falling tree branch to heavy machinery vibrations that may cause harm to adjacent structures can be seen as cause for a lawsuit. Most often, such damage is seen to happen during the time when your foundation is being set. This could cause worry about underground water sources and support extending below the ground of other buildings in the area.
Besides structural and builder’s insurance, warranty extends the coverage, claims, and care for years after the home is built – taking care of issues and damage that insurance does not address. While insurance deals with unforeseen circumstances and matters that were out of your control, Home Warranty offers solace when you need to deal with maintenance, repair, and replacement due to general wear and tear.
Usually put in place for a period of ten years, Structural Warranty covers defects in the foundation, load-bearing walls, beams, pillars and sometimes even wiring and plumbing systems. Not only does it keep you worry free, it also assures that any negligence on the part of the contractor is covered for without conflict.