Property development is a tumultuous business – and any mistake made can be costly. This is why it’s important that you have some form of property developer insurance in place. Having it will not only give you peace of mind but also will ensure financial security should the worst happen.

Property developer insurance provides cover for any construction work you’re undertaking to improve your investment.

Typically any contractors carrying out the work will have their own insurance, but some contractors might not have insurance and their policies won’t be as comprehensive as you’d like.

A property developer insurance policy will cover you for a variety of scenarios. For example, any costs incurred during construction on a private property, your public liability as the property owner, and your liability for any damage caused by your property or project to surrounding buildings.

What cover should you get?

Every insurance company will provide a different package, that is unique to your project and requirements. So it’s good to know what you need covering before you start project.

Public liability covers you if anyone gets hurt when they enter your site of works – even if they’re not meant to be there.

Standard building damage covers you if the work you’re carrying out causes damage to other buildings or harm to people, often through subsidence and general injuries and accidents.

The  21.2.1.  Clause protects you for any financial losses caused by loss or damage to surrounding property caused by a contractor or sub-contractor while working on your development.

Remember that if you discover that a previous owner has applied restrictive covenants it could put your development in jeopardy - including not being able to develop certain areas or limiting the height of certain building.

Having this included in your insurance means you’re financially covered if something like this turns up.