Builders insurance

A straightforward guide for UK builders and renovators

Builders insurance protects people and firms carrying out construction, renovation, or repair work. At its core, it is a set of policies designed to cover property damage, third-party injury, tools and plant, and the financial impact of delays or claims. You might need it if you are a contractor, a self-employed tradesperson, or a homeowner managing a build. It helps keep a project financially stable when things go wrong, from accidental damage to severe weather.

Costs are shifting in 2025. Buildings premiums have risen sharply year-on-year, with average buildings-only prices moving from roughly £167 to about £208. Combined buildings and contents policies remain better value for many households, averaging around £253, while contents-only has been more stable. For straightforward site work, rates have softened slightly this year thanks to strong competition, but complex engineering projects still face cautious underwriting. Claims remain high due to storms and flooding, which is why resilience planning matters.

This guide explains what typical builders insurance includes, what it excludes, and how claims are handled. It sets realistic expectations, outlines the trade-offs between cost and cover, and shows you how to compare options safely. We will keep the language plain and anchored in the UK market so you can decide what genuinely fits your project.

Insurance works best when you understand the scope of cover, the excess you will pay, and the limits that apply.

What is covered in practice

Builders insurance is usually a package. Core parts often include public liability for injuries or damage to third parties linked to your building activities, employer’s liability if you have staff or labour-only subcontractors, contract works to cover the permanent and temporary works on site against risks like fire, theft, or storm, and cover for tools, plant, and hired-in equipment. For homeowners acting as project managers, a renovation or extension policy can protect the existing structure as well as the works.

Exclusions matter. Wear and tear, gradual deterioration, and poor workmanship are commonly excluded. Flood or storm damage is normally covered, but certain high-risk locations may face higher excesses or special terms. Theft cover may require evidence of forced entry and approved security overnight. Professional advice or design errors usually need a separate professional indemnity policy. Business interruption for project delays can be added, but it has specific triggers and limits.

Claims follow a clear process. You report the incident promptly, provide photos, invoices, and site records, and cooperate with loss adjusters. For example, if storm damage halts a roof replacement, contract works may fund repairs and materials so the build can continue. If a passer-by trips over site materials and is injured, public liability can respond to legal costs and compensation within the policy limit. Be prepared to pay the policy excess and to meet any policy conditions, such as securing the site properly.

Who benefits the most

Builders insurance is valuable for main contractors, self-employed trades, and small firms working on domestic or light commercial projects. Homeowners managing extensions or renovations gain protection for both the existing structure and the new works, helping lenders stay comfortable and contractors work with confidence.

It is especially useful where there are third parties on or near the site, where hired-in plant is used, or where weather and supply chain risks could cause damage or delay. If you are doing very minor DIY with no structural changes, no contractors, and low values, a specialist policy may not be necessary, but you should still check your home insurance because many standard policies limit or exclude cover during building works.

Picking a level that fits your job

1. Essential cover - Public liability, employer’s liability if you have employees, and basic tools cover. Suitable for small trades and short, low-value jobs with simple risks.
2. Standard project cover - Adds contract works with realistic limits matching your build value, plus hired-in plant and temporary site structures. A fit for typical extensions and refurbishments.
3. Comprehensive build cover - Higher limits for contract works, increased public liability limits, own plant, business interruption for delays, and non-negligent liability. Good for larger or multi-phase projects.
4. Specialist add-ons - Professional indemnity for design and advice, JCT clause-compliant non-negligent liability, advanced loss of rent for landlords, and cyber cover for firms handling sensitive data.
5. Homeowner renovation policy - Combines buildings cover for the existing home with works cover, protecting both during an extension, loft conversion, or major refurb.

Each step up generally increases limits and widens protection. Complex engineering, basements, or unusual materials may require bespoke underwriting and stricter site conditions.

Price signals and what shapes them

Pricing varies by insurer. Extreme weather, inflation, and labour costs continue to influence rates. Paying annually rather than monthly can reduce overall cost. Bundling buildings and contents is often more cost-effective than separate policies.

Eligibility and what insurers check

Most UK residents and registered businesses can apply, provided the proposer has an insurable interest in the works. Insurers will ask for your business status, experience, the project address, start and completion dates, the contract value, construction methods, and details of subcontractors. They may want method statements, risk assessments, and evidence of site security for higher-value projects.

Common decline reasons include high flood exposure without resilience measures, past fraud or non-disclosure, unsafe working practices, or projects involving hazardous processes outside the insurer’s appetite. If you design as well as build, you may need professional indemnity in place. For homeowners, your existing buildings insurer might require notification or special terms while works are underway.

From quote to claim - simple steps

1. Gather project details, including value, timeline, site address, and trades involved.
2. Get several like-for-like quotes with the same limits, excesses, and endorsements.
3. Check exclusions, warranties, and conditions before selecting appropriate cover.
4. Buy the policy for the full contract period, aligning dates with your build.
5. Implement required security and safety measures stated in your policy wording.
6. Keep records, photos, and receipts to support any future claim efficiently.
7. Report incidents promptly, follow guidance from the insurer or loss adjuster.

Balanced view of the upsides and trade-offs

Key checks before you commit

Review the policy schedule, wording, and endorsements in full. Pay attention to the excess on each section, especially storm, flood, and theft. Confirm the contract works sum insured reflects the total build value including materials, labour, and professional fees. Understand exclusions for defective workmanship and the conditions attached to theft or security. Note any waiting periods, the treatment of partially completed works, and whether temporary accommodation or business interruption is included. At renewal, expect price changes as market conditions shift, and check for any adjustments to limits, warranties, or geographical restrictions. Keep proof of ownership for tools and plant and maintain accurate site records.

Related covers that might fit better

1. Professional indemnity insurance - For those providing design, specifications, or advice.
2. Plant and machinery insurance - Higher limits and wider terms for owned or hired plant.
3. Structural warranty - For new builds or major conversions, protecting against defects post-completion.
4. Home insurance with renovation endorsement - For homeowners undertaking smaller projects.
5. Public liability only - For micro-jobs without contract works exposure.

FAQs

Q: Is builders insurance legally required in the UK? A: Employer’s liability is legally required if you have employees or labour-only subcontractors. Other covers are not mandatory by law, but contracts and lenders often require them.

Q: How much cover do I need for contract works? A: Set the sum insured to the full build cost, including materials, labour, and fees. Underinsuring can reduce claim payouts, so use accurate quotes and contingency allowances.

Q: Are floods and storms covered? A: Usually yes for contract works and buildings, subject to policy terms, excesses, and location risk. High-risk areas may face higher premiums, special conditions, or exclusions.

Q: Can I pay monthly? A: Many insurers offer monthly instalments, typically with credit charges. Paying annually can cost less overall, but choose the option that keeps cash flow stable.

Q: What if I change the project scope mid-build? A: Tell your insurer promptly. Significant changes to value, methods, or timelines may need an endorsement or revised premium to keep cover aligned with the actual risk.

What to do next

Take a moment to map your project value, timeline, and risks. Compare like-for-like quotes using the same limits and excesses, then read the policy wording carefully. If anything is unclear, ask the insurer or broker for written clarification. Move forward only when the cover matches your build and your budget.

Important note

This guide provides general information, not personal financial advice. Policy terms vary by insurer and project. Always read your policy documents carefully and confirm details before purchasing or relying on any cover.