Insurance during a new-home build can feel confusing because there are different types of cover, different contract structures and a clear handover point when responsibility changes. The short answer is: make sure the project is insured from the start, but do not assume the same policy or person is responsible for every stage.

For a full new-home building contract, the builder will typically arrange contract works insurance for the construction period. You should still read the contract, ask for evidence of the policy and make your own arrangements for ongoing house insurance before you take possession.

What is contract works insurance?

Contract works insurance is designed to protect a construction project while work is underway. Building Performance says that, for a new home, a building contract will typically require the builder to arrange this cover for property undergoing construction.

The exact cover, exclusions, limits and excess are set by the policy—not by a general description online. Contract works insurance is also different from ordinary house insurance and public liability cover.

Who usually arranges insurance during a new build?

It depends on the contract. In a full contract, Building Performance says the builder should organise contract works and public liability insurance. In a managed labour-only or labour-only arrangement, responsibility can be different, so the homeowner needs to be very clear about who arranges which cover.

That is why “the builder is insured” is not enough information. Ask for the answer in writing and read the relevant contract clause. You want to know:

Who is arranging the policy?
What is the policy type and insurer?
When does cover start and end?
What are the main exclusions, limits and excesses?

What should you ask your builder before construction starts?

Ask before construction starts:

Request proof of cover. Ask for the relevant certificate or schedule and check that it relates to your project and intended build period.
Read the contract clause. Confirm who has the obligation to arrange cover and who is responsible for any excess if a claim is made.
Clarify the handover point. Ask when the builder’s construction-period cover ends and what event triggers the transition to your own house insurance.
Tell your lender and insurer early. They can explain their requirements for cover in your name.

When should you arrange your own house insurance?

Do not leave the conversation until the day you collect the keys. Start talking to your insurer well before handover so you can understand the information it will require and ensure your policy is ready when you take responsibility for the home.

The exact start date will depend on the contract, the insurer, the lender’s requirements and the point at which you take possession or the construction-period cover ends. Your insurer can tell you what it needs, such as the property details, sum insured, completion status and any certificates or documents relevant to the policy.

What does Today Homes say about insurance during its builds?

For a Today Homes build, construction-period insurance is arranged through to completion and handover. The policy wording and contract define the cover for your individual project.

Today Homes Ltd has a blanket insurance policy in place that covers every single build the company has under construction at any one time so you can be assured your home and investment is safe and secure, no matter what happens.
We can provide you with a site specific insurance certificate on request which is commonly part of the mortgage approval process.

Final thoughts: clear insurance arrangements are part of a well-planned build

You do not usually need to buy ordinary occupied-home insurance for a house that is still being constructed, but the build itself needs appropriate insurance arrangements. In a full new-home contract, the builder will typically arrange contract works cover; in other structures, responsibility may differ.

Do You Need Insurance for a Home That Hasn’t Been Built Yet?