Structural Insurance for Self-Built Homes
By Steven De Nazareth
Updated: June 13th, 2019
Do you feel structural insurance is all you need? This article will change your perspective about why your home deserves a home warranty.
The joy of being there every step of the way. Having a say in every brick, beam, and wall comes with a lot of responsibility.
Injuries on site to a worker, accidental falls, natural disasters, and unforeseen circumstances can set your budget off.
Time is a factor as well. Having the plan pushed back by weeks, if not months; time and money that you cannot get back. This makes it necessary to invest in structural insurance, warranty and legal coverage for all the essentials.
What is Structural Insurance?
Structural insurance functions within the parameters of Builders Insurance and Site Insurance. It covers claims with regards to the foundation and the framework of the building. Also, it includes the integrity of the site it is built on. This when you wonder if a structural insurance home is safe. This is best homeowners insurance during construction.
The percentage of self-built homes is increasing in the US. Self build insurance companies offer a comprehensive list of structural insurance for homes built without the assistance of building agencies.
Structural claims and structural insurance covers the claim of any structural defects in a home for a fixed number of years. Often certain companies have a secondary set of rules. This pertains to the fact that the claim will only kick in 7 to 10 years after the house is completed.
Structural insurance usually comes hand in hand with site and builders insurance as well. Both of these are essential and usually synonymous with structural insurance.
Site insurance is offered to builders as well as people who have purchased land and intend to construct. It not only covers any natural disaster 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. Things like huts, caravans, tools and the building under construction itself to be partially or wholly damaged.
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 a person’s needs by offering them separately. These insurance policies even accommodate for theft of tools and valuables from the site with a limit of the claim. That being said, it is important to pick appropriate coverage plans.
Allowing delays and pushbacks, any building or structural insurance for people who are constructing on their own extend to 18 months. This is as opposed to the usual 12-month coverage given for builders.
Why Insurance During Construction is Essential
Building a home isn’t only about structure and integrity. Along each step of the way, you have to be aware of not only accidents and loss 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. 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 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. A falling tree branch to heavy machinery vibrations can cause harm to adjacent structures. This is a lawsuit on its own. 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.
Home and Structural Warranty
Besides structural and builder’s insurance, a warranty extends the coverage, claims, and care for years after the home is built. This takes care of issues and damage that insurance does not address. 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, a structural warranty is 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. Also, it assures that any negligence on the part of the contractor is covered for without conflict.
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