UK Property Developers Insurance Quotes
Property Developers Insurance
Contract works, site liability and existing-structure cover for a development project, from new build to conversion, renovation and refurbishment.
Why compare property developers cover here?
- Weigh up contract works, site liability and existing-structure quotes in one place
- Covers new build, conversion, renovation and refurbishment projects on site
What is property developers insurance?
Property developers insurance covers a developer carrying out a building or development project, such as a new build, conversion, renovation, refurbishment or extension, from the day work starts on site to the point the finished building is sold or let. Its core is contract works, also called contractors' all risks, which insures the works under construction along with the materials and work in progress on site if fire, storm, flood, theft or accidental damage strikes. Alongside it sit cover for the existing structure while it is worked on and often unoccupied, public liability for injury or damage to the public, neighbours and surrounding property, and employers' liability for site staff and labour-only subcontractors. A finished-building property policy will not answer a claim on a live site or works in progress, so a developer running a project needs project-based cover, not a standard buildings wording.
A development is not a finished building, and that difference sits behind the whole policy. A bare plot with foundations going in, a Victorian terrace mid-conversion into flats, a barn being turned into a home, a shop being stripped back and refitted, and a new block waiting to be sold once it is signed off all carry different risks, and all of them move as the work progresses. Standard commercial property insurance is written for a completed, occupied building and steps back from a live site, so a developer needs a policy built around the project itself.
The contract works section is the heart of it. It insures the works up to the full contract or reinstatement value, and because that value climbs as materials go in and trades add labour, the sum insured has to reach the completed value rather than the cost on day one. Under-insure the works and an "average" clause can cut a claim back in proportion. Where the project is a conversion or refurbishment, the existing structure being worked on needs cover too, since it is often empty during the build and a normal buildings policy excludes an unoccupied property under works.
Liability on a live site is the other half. Public liability answers injury to the public or neighbours and damage to surrounding property, frequently through a JCT non-negligence extension, while employers' liability is a legal requirement wherever there are site staff or labour-only subcontractors. Building contracts drawn up on JCT terms commonly require contract works insurance, sometimes in the joint names of the employer and the contractor, so who insures the works and to what value is a question a developer has to settle before the first spade goes in. The brokers on our panel place development and contract works risks every working day and rate the project against its type, value and stage rather than a single template.
Related property cover
How property developers insurance works
Describe the project
Share the project type, the contract or completed value of the works, whether it is a new build, conversion or refurbishment, the site postcode, the build stage and who is carrying out the work. Accurate answers bring back sharper quotes from the underwriting panel.
Weigh up specialist quotes
Your details reach brokers who rate development and contract works risks every working day. They price the works, the existing structure, public and employers' liability and plant against your project rather than a generic profile.
Set the policy up and stay covered
Settle on the shape that suits the project: single-project cover for one development, an annual policy for a developer running several, JCT joint-names where the contract calls for it, and void cover carrying through to a completed building held for sale or let.
What does property developers insurance cover?
Property developers insurance protects a live building project, not a finished building. It covers the works under construction, the existing structure while it is being converted or refurbished, the plant and materials on the site, and the developer's liability to workers, neighbours and the public. A finished-building property policy will not respond to a working site, so a development is insured on a contract works basis for as long as the project runs. Cover is arranged through FCA-regulated UK brokers on the MyMoneyComparison.com panel.
Contract works and contractors' all risks
The defining cover for a developer. It protects the works themselves as they go up, the new or converted structure, and the materials and work in progress on the site against fire, flood, storm, impact, vandalism and theft. This is the cover a building contract usually asks for, and it runs from a bare site through to practical completion.
The existing structure under renovation
Often unoccupiedOn a conversion, refurbishment or extension the building you already own is being worked on and is frequently empty. Standard property cover falls away once a building is unoccupied and under works, so the existing structure is insured alongside the contract works for the duration of the project. This keeps the original fabric protected while the new work is carried out around it.
Public liability
Covers injury to the public and neighbours, and damage to their property, arising from the works. A non-negligence extension can also respond to damage to surrounding property where no fault has to be proven, which matters on a tight site next to buildings you do not own. A limit is set for the site.
Employers' liability
Legal requirementWhere the project uses site staff, it is a legal requirement in the UK. It also picks up labour-only subcontractors who work under your control, covering injury or illness they suffer on the development. The statutory minimum limit applies as standard.
Plant, tools and site materials
Owned and hired-in plant, hand and power tools, and the materials waiting to be built in, protected against damage and theft from the site. Cover can extend to temporary buildings, site cabins and hoarding, the fixtures of a working development that a finished-building policy never sees.
Completed and unsold void cover
Final stageOnce the works finish, the development may sit empty while it is sold or let. Unoccupied or void cover carries the finished building through that gap, keeping it protected against fire, escape of water, theft and malicious damage until it is handed over or brought into use.
Match the cover to the stage your project has reached, from a bare site to a completed build held empty, and set the works to their full value before you go on cover.
What property developers insurance does not cover
Every development policy is priced around what you declare: the project type, the contract or completed value of the works, the build stage, who is carrying out the work and how the site is protected. Drift outside those figures and the cover can fall away. Reading the limits matters as much as reading the cover, because under-insuring the works, an unoccupied completed building and facts left off the proposal are the most common reasons a development claim is cut back or turned down.
Wear, tear and gradual damage
Loss caused by age, general deterioration, rust, rot, damp or a slowly operating cause falls outside contract works cover. The same goes for the existing structure under renovation. Cover answers sudden, one-off events such as fire, storm, flood or theft, not damage that builds up on site over weeks or months.
Completed building left empty too long
Once the works finish and the building is held unsold or unlet, cover moves onto a void or unoccupied basis. Leave it empty past the agreed period without unoccupied cover in place and protection can drop back to fire, lightning and explosion alone, stripping out escape of water, theft, malicious damage and accidental damage.
Undisclosed material facts
The project type, the scope of the works, the build stage, listed or structural work, past subsidence or flooding, and previous claims all have to be told to the insurer at quote and again at renewal. Under the Insurance Act 2015 a claim can be reduced or refused, and the policy voided, where those facts are misrepresented.
Under-insuring the contract works
Set the works sum insured below the full contract or completed reinstatement value and the average clause bites, cutting the payout in line with the shortfall. Because the value of the works rises as the build progresses, the sum insured has to reach the finished value rather than the cost on day one, not the site's market or resale price.
Contractors' own plant and liability
A developer's policy is not a substitute for a contractor's own cover. Plant, tools and machinery owned or hired in by contractors, and a contractor's own public and employers' liability, usually sit on their policy, not yours. Where trades are engaged on a labour and plant basis, check who insures what before work starts on site.
Faulty design, workmanship and defects
Contract works cover answers accidental damage to the works, not the cost of putting right defective design, materials or workmanship in the first place. The defective part itself is typically excluded, even where the wider damage it causes may be met. Rectifying poor work remains a matter for the contractor and the building contract.
What is excluded shifts from insurer to insurer and project to project. Read the wording on the works sum insured, the existing structure, void periods, plant and disclosure closely before you commit. For cover once a finished development sits empty, see our unoccupied commercial property insurance guide.
Types of development project we cover
A developer's cover follows the job, not a finished building. The project type, whether there is an existing structure being worked on, and whether that building is occupied all shape how the works, the site and the liability are insured. Pick a project type below to see what sits behind the cover, from a single small refurbishment through to a multi-unit scheme.
Building from a cleared site or an empty plot, where the whole structure is created from the ground up. There is no existing building to insure, so the cover centres on the contract works themselves, the materials brought onto site and the plant used to put them up. The works rise in value from foundations to practical completion, so the sum insured has to reach the finished contract cost.
What shapes its cover: no existing structure to protect, so contract works and site liability lead. The rising value of the works and theft of materials from an open site are the risks to watch.
Changing what a building is used for, such as commercial to residential, a barn to a home, or an office block to flats. An existing structure stays in place while it is stripped out and rebuilt inside, and it is usually empty for the duration. Both the works and the building being converted need cover, because a standard property policy falls away once the premises are unoccupied and under construction.
What shapes its cover: an existing structure that is being worked on and is usually unoccupied, so cover for that building sits alongside the contract works for as long as the conversion runs.
Upgrading, modernising or restoring a building that stays in the same use, from a light refresh through to a full strip-back and refit. The existing fabric is kept and worked on, so the original structure and the improvement works are both at risk while trades are on site. Whether the building is occupied or empty during the job changes how it is rated and which exclusions apply.
What shapes its cover: occupancy is the swing factor. An empty property under refurbishment carries different terms to one that stays in use, and the existing building needs cover next to the works.
Adding new floor space to a building that is already there, such as a rear or side extension, an extra storey or a wrap-around addition. The new works are physically tied into the existing structure, so damage during the build can reach the original building as well as the new part. The join between old and new, and the value of the property already standing, both feed into how the project is covered.
What shapes its cover: new works joined to a building that stays standing, and often still lived in or used, so cover pairs the contract works with the existing structure and the liability of building against it.
A scheme that builds several units at once, from a terrace or block of flats to a small estate of houses. Units reach different stages at the same time, so parts of the site may be under construction while others are finished and waiting to be sold or let. The contract works run to a much higher combined value, and the completed units may need void cover before they are handed over.
What shapes its cover: scale and mixed stages. A larger sum insured for the works, plus finished units that may sit empty for sale or let, so contract works and void cover can run side by side.
An individual building their own home or project, managing the site themselves and bringing in trades and subcontractors along the way. The works, the materials on site and the developer's own liability all need cover, whether the build is a new house on a plot or a conversion of an existing property. Employers' liability comes into play once labour works under the self-builder's control.
What shapes its cover: an individual carrying the site risk, so the works, materials and public liability lead, with employers' liability where subcontractors work under the self-builder's control.
Single small refurbishmentMulti-unit scheme
Whatever the size, the project type, the existing structure and whether it is occupied set the cover. Match the policy to the job, then insure the works to their full value.
Insure the works to the full completed value, not the value today.
A development starts as a bare site and ends as a finished building, so the value of the contract works rises with every stage of the build. The sum insured has to be set to the full completed value of the works from day one, covering the materials, labour and professional fees that go into the finished structure. Set it to the value at the start, or to the site's current value, and the works drift into under-insurance exactly as they near completion.
The works are worth more each week the build runs
Every load of materials and day of labour adds value on site. The sum insured must reach the finished figure before the first spade goes in the ground.
The dashed line is the sum insured set at the completed value of £345,000. A policy priced against a part-built site sits well below that line for most of the programme, so a fire or flood late in the build, when the most value is standing on site, is where a shortfall bites hardest.
What the completed value includes
The full contract sum, not the raw land: building reconstruction £280,000, demolition and site clearance £18,000, professional fees £22,000, a building regulations uplift £15,000 and project management £10,000, which reach the completed works value of £345,000.
The existing structure is a separate sum insured
On a conversion or refurbishment, the building you are working on is not part of the contract works. It carries its own sum insured, set to the cost of reinstating the existing structure, and sits alongside the works figure rather than being folded into it.
Insure the works for 70% of the completed value, collect 70% of every claim.
If the contract works are insured for less than their full completed value, the insurer applies "average" and cuts the settlement in proportion to the shortfall. Pitch the sum insured at the mid-build value, roughly 70% of the finished £345,000, and that same 70% haircut lands on every claim, not only a total loss.
Because the sum insured covers only 70% of the completed works, every settlement is cut to roughly 70%. Water damage to new joinery costing £10,000 to put right is met at around 70% and the developer funds the rest. The same cut hits an £18,000 storm claim on the part-built roof and a £22,000 theft of materials from site, not only a fire that levels the works.
How to set the contract works figure
Base the sum insured on the full contract sum or a reinstatement figure for the finished works, including materials, labour and professional fees, and set it to that completed value from the outset rather than the site's value today. Where a variation or a period of delay pushes the programme on, revisit the figure so it keeps pace with the works, and hold the existing structure on its own separate sum insured. Compare property developers insurance quotes once you have the completed works value in hand.
What impacts property developers insurance costs
Premiums on a development spread wider than on a finished building, because no two projects carry the same risk. A single-storey extension by an established builder sits in a very different band to a full conversion of an empty Victorian terrace into flats. Knowing which factors push the price up or down helps you ask sharper questions before you buy.
Give the insurer an accurate picture of the project, the works, the build stage and who is carrying out the work right at quote stage. Appetite for development risk varies more than in almost any other line of UK insurance. Some insurers steer clear of structural conversions, listed fabric, timber frame or long void periods, while others build their book around exactly those projects. Specialist brokers know which insurer suits which profile, so full disclosure points you at the right specialist rather than a declined application further down the line.
MMC Property Development Specialists, FCA-authorised (reg. 916241)
Project type and the works
A new build on a clear plot rates differently to a conversion, a refurbishment or an extension onto an occupied building. Structural work, underpinning, timber frame and demolition all raise the risk, while a straightforward internal fit-out sits lower on the underwriter's scale.
Contract works value and sums insured
The works are rated on their full contract or completed reinstatement value, which climbs as the build progresses. The value of the existing structure, plant, temporary works and any public liability limit add on top. The larger the project, the higher the premium, and above set thresholds a survey is usually called for.
Build stage and who does the work
A project on a bare site, one part-built, and a finished building held empty each rate on their own basis. The insurer also weighs who is carrying out the work: an experienced principal contractor with its own cover reads differently to a self-builder or a chain of labour-only subcontractors.
Site, postcode and neighbours
Environment Agency flood zones, subsidence-prone ground and crime-heavy postcodes all feed into the rate. A site hemmed in by other buildings raises the public liability exposure, since work close to neighbouring property is where non-negligence damage claims tend to arise.
Existing structure and void periods
A conversion or refurbishment carries the value of the existing building, often empty while it is worked on, which adds to the rate. How long the finished development is expected to stand unsold or unlet also matters, since a long void period on a completed building carries its own loading.
Site security and protection
Secure hoarding, lockable site stores for plant and tools, CCTV, alarms and controlled access all bring the premium down, since theft from site is a common development claim. How materials and plant are stored, and whether the site is left secure out of hours, weighs directly on the rate.
Each development is rated on its own project type, contract works value, build stage, site and security. Compare property developers insurance quotes to see how your project, the works and your site arrangements shape the premium across our specialist broker panel.
Choose your property developers cover level
Development cover is built up in layers, and most policies group those layers into three levels. Which level fits turns on the project type, the value of the works, whether an existing structure is being converted, and the liability a live site brings. Most developers land on the Standard package, which stacks public and employers' liability and site plant on top of the contract works core.
Contract works only
The floor for any development. The works and site materials on a contract works basis against the usual insured perils, with no site liability and no cover for an existing structure. It fits only a narrow set of cases, such as a developer whose liability is arranged under a separate policy.
- Contract works and site materials
- Fire, flood, storm and theft on site
- Public and employers' liability
- Existing structure under renovation
- Plant, tools or completed void cover
Works plus site liability
The realistic starting point for most developers. On top of the contract works core it adds public liability with a non-negligence extension, employers' liability for site staff, and cover for plant, tools and site materials. This is where the bulk of UK developers sit, and the shape most insurers quote by default.
- Everything in Contract Works Only
- Public liability, non-negligence
- Employers' liability for site staff
- Plant, tools and site materials
- Temporary works and hoarding
Full development cover
Built for larger or more complex projects. On top of Standard it brings cover for the existing structure under renovation, JCT joint-names, delay in start-up, legal expenses, and void cover for the completed building held unsold or unlet. It suits conversions, multi-unit schemes and contracts drawn up on JCT terms.
- Everything in Standard
- Existing structure under renovation
- JCT joint-names cover
- Delay in start-up and void cover
- Legal expenses cover
| Cover feature | Works | Standard | Comprehensive |
|---|---|---|---|
| Contract works and site materials | |||
| Fire, flood, storm and theft on site | |||
| Public liability (incl non-negligence) | |||
| Employers' liability for site staff | |||
| Plant, tools and site materials | |||
| Temporary works and hoarding | |||
| Existing structure under renovation | |||
| JCT joint-names cover | |||
| Delay in start-up and void cover | |||
| Legal expenses cover |
What sits in each package, and which extras are optional, differs between insurers. Compare property developers insurance quotes to see what each level includes for your project type, contract works value and build stage.
How much does property developers insurance cost?
A developers premium turns on the project: the type of build, the full contract works value, the existing structure, the site liability and how long the works run, so it moves more than a finished-building policy. Rather than quote figures that would not match your own scheme, the guide below shows where lower, middle and higher project profiles sit and what pushes a premium up or down.
A property developers premium is built from the contract works value insured to the full completed value, the type of project, the value and state of any existing structure, the public and employers' liability limits, the length of the build and the site security, plus the developer's experience and claims history. A small refurbishment or single new build with a modest works value sits at the lower end. A conversion or a scheme of a few units sits in the middle. A large or complex build, structural or basement works, or a long programme of multiple projects sits at the higher end and is individually underwritten. Every premium is set to the project, so comparing the whole broker panel is how a developer finds the right price.
Refurbishment or one new build
where a small development sits
A single refurbishment or one straightforward new build with a modest contract works value, a short programme, competent contractors and a clean record. Contract works, site liability and, on a refurbishment, the existing structure.
Premium moves with- Contract works value and project type
- Existing structure and site security
- Length of the build and claims record
Conversion or a few units
more works, more moving parts
A change-of-use conversion or a development of a few units, with a larger contract works value, an existing structure being worked on, and public and employers' liability across a busier site. Longer programme and higher liability limits.
Premium moves with- Contract works value and number of units
- Existing structure and works near neighbours
- Public and employers' liability limits
Complex or multi-project build
individually underwritten by specialist insurers
A large or complex build, structural or basement works, works close to neighbouring property, a long programme, or a development company running several projects. Case-rated by specialist insurers against the whole programme rather than a standard table.
Premium moves with- Contract value, structural and basement works
- Works near neighbours and programme length
- Number of projects and prior claims
A developers policy insures the contract works to the full completed value, the existing structure where there is one, site public and employers' liability, and the completed building while it stands unsold or unlet. The project itself is the biggest factor: a light refurbishment rates very differently from a ground-up new build, a change-of-use conversion or a basement dig. Structural works, works close to neighbouring property, and a long programme all feed into the rating, and the developer's experience and claims history matter. Site security against theft of materials and plant helps the terms, and a completed building standing empty sits higher up the scale because theft, malicious damage and escape of water rise while it is unoccupied.
Important: This page describes what drives a property developers premium rather than quoting figures, because a premium can only be set against your own project, its works value and its liabilities. Nothing here is a quotation or an offer of insurance. Actual premiums vary by project type, contract works value, existing structure, liability limits, programme length, site security, experience and claims history, so always compare several quotes before you buy. MyMoneyComparison.com Ltd is authorised and regulated by the Financial Conduct Authority, FCA registration number 916241.
Premiums are individually quoted. Compare property developers insurance quotes to see what your specific project, works value and site liability price at across the MyMoneyComparison.com broker panel.
When property developers claims get paid, and when they get declined or reduced
The large majority of development claims settle without a fuss. Where one is cut back or turned down, the cause sits on a short and familiar list: the works were insured below their full completed value, the site was left unsecured, a material fact was never mentioned, or a cover line such as public liability or the existing structure was simply not in place. Whether you collect the full amount or a reduced one is, in practice, settled at the quote stage rather than on the day of the loss.
| Scenario | When the claim is paid in full | When the claim is reduced or declined |
|---|---|---|
| Fire destroys the works on a new build site | Paid The contract works are insured to their full completed value, the project type and build stage match the schedule, materials on site are within the declared limit, and the site was managed in line with the policy conditions. | Reduced Where the works sum insured falls short of the completed value, the average clause bites and the payout is scaled back. A change of project scope never declared, such as extra structural work, can remove cover altogether. |
| Storm or flood damages a part-built structure | Paid The loss follows a genuine storm or flood, the works and temporary protection were sound beforehand, the site was left secure, and the damage to the structure and materials is reported quickly rather than left to worsen. | Declined Where temporary works or weather protection were inadequate, water getting into the works over time is treated as gradual damage rather than a sudden event, and poor site management spotted during assessment counts against the claim. |
| Theft of materials and plant from site | Paid The site was secured with hoarding and a lockable store, plant and materials sat within the declared limits, a crime reference was logged, and the security conditions in the policy were being met at the time of the theft. | Declined The site was left open or unsecured against the policy conditions, the stolen plant belonged to a contractor and sits on their own cover, or the value on site was well above the limit declared at quote. |
| Damage to a neighbouring building from the works | Paid Public liability with a non-negligence extension is on the policy, the harm to the surrounding property is clearly traced to the works, and the site was run in line with the method statements and building contract. | Declined Public liability was left off at quote, there is no non-negligence extension where the damage was not the developer's fault, or the claim is pushed back to a contractor's own liability policy instead. |
| A site worker or subcontractor is injured | Paid Employers' liability is in place for site staff and labour-only subcontractors, the workforce was declared, site records and risk assessments are in order, and the injury is properly reported and documented. | Declined No employers' liability was arranged where the law required it, the injured worker or subcontractor was never declared, or site safety records fall short of what the policy conditions call for. |
| The existing building is damaged during a conversion | Paid Cover for the existing structure under renovation is on the policy, the building and its unoccupied status were declared, and the damage from the works is reported promptly with the site records to support it. | Declined The existing structure was never added to the cover, the building was left empty and under works without that being declared, or the loss is put down to the poor condition of the building before work began. |
A reduced or refused development claim nearly always comes down to one of four things: a works sum insured set below the completed value so the average clause applies, a site left unsecured against the policy conditions, a material fact left out such as a change of project scope or the existing structure, or a cover line such as public or employers' liability simply not chosen at quote. At claim stage, loss adjusters commonly ask for the contract value, the build programme, the original declaration and the site security arrangements, checking the schedule lines up with the project as it really is.
Specialist development brokers build these outcomes into the cover before anything goes wrong. Compare property developers insurance quotes to see what sits in the policy as standard and what has to be endorsed for your own project and site.
How to prepare for a property developers insurance quote
A specialist broker can rate a development accurately only when the picture of the project is clear from the outset. Spend ten minutes setting out the project type, the full value of the contract works, the existing structure and who is carrying out the building before you open the form, and you get sharper quotes, far fewer follow-up calls, and stronger terms across the specialist panel.
Set out the project and the value of the works
The contract works are the core of the cover, so have the project details and the full works value to hand before you begin.
- Project type: new build, conversion, renovation or refurbishment
- Full contract or reinstatement value of the completed works
- Site address, start date and expected completion date
- Whether the finished building is to be sold or let
Cover the existing structure and who is building
Rating follows the existing building being worked on and how the site is run, not a finished-building template.
- Existing structure, its construction and whether unoccupied
- A main contractor, several trades or a self-managed site
- Whether a JCT or other building contract is in place
- Site staff, subcontractors, security and plant on site
Compare and talk to a specialist
Fill it in once and get matched with brokers who underwrite development and contract works day in, day out.
- Quotes from FCA-regulated specialist brokers
- New build, conversion, renovation and refurbishment
- Contract works, existing structure and site liability
- One form, several quotes matched to your project
Specialist and high-risk development cover
Not every development fits inside a mainstream insurer's appetite. A large or complex build, structural alterations and basement digs, a listed or non-standard conversion, works pressed up against neighbouring property, a project running past its completion date and a finished building left standing empty all sit outside the standard book. Open any heading below to see how specialist underwriting handles the eight kinds of higher-risk development UK developers raise most often.
Large or complex builds and high contract values
A multi-unit scheme, a high contract value or a long build programme all lift the sum at risk on site. The contract works value climbs as the build progresses, so the sum insured must reach the full completed value or the average clause can cut a claim, and a longer programme leaves the works exposed to storm, fire and theft for more of the year.
Specialist contractors' all risks underwriters rate for the size and length of the project, the trades on site and the phasing of the works. Mainstream insurers tend to either decline larger schemes or load the terms. See our property developers insurance guide for specialist cover.
Structural alterations and basement works
Underpinning, removing load-bearing walls, digging out a basement or extending below ground all carry a raised risk of collapse and of damage to the existing structure and to what stands next door. Many standard contract works wordings exclude or restrict cover for structural and basement works unless they are declared and rated up front.
Specialist underwriters take on structural and basement projects where an engineer's design, a method statement and a party wall award are in place. They rate for the depth of the dig, the ground conditions and the proximity of neighbouring buildings, rather than treating the job as a routine refurbishment.
Listed and non-standard conversions
Converting a listed building, a barn, a church or a former commercial unit to residential brings conservation duties and non-standard construction into the works. Period materials, heritage trades and conservation-officer sign-off push both the value of the works and the length of the programme well above a standard build, and the existing structure needs cover while it is opened up and unoccupied.
Specialist insurers rate the existing listed or non-standard structure alongside the contract works, allowing for the slower reinstatement and the protected fabric. Mainstream contract works policies usually decline listed conversions or strip the existing-structure cover back.
Works close to neighbouring property
A terraced infill plot, a party wall shared with the building next door or a site on a busy street raises the risk of damage to surrounding property and injury to the public. Ordinary negligence to a neighbour is met by public liability, but damage caused without negligence, from vibration, subsidence or the removal of support, is not, and that is a common flashpoint on a tight site.
Specialist developer underwriters add a JCT non-negligence extension (often under clause 6.5.1) to cover damage to surrounding property from the works where no negligence can be shown. See our property developers public liability guide.
A project running over its completion date
Contract works cover is written for a set build period. When a project slips past its completion date, because of weather, supply delays or a contractor walking off, cover can lapse mid-build unless the policy period is extended, leaving the half-finished works uninsured at their most exposed stage.
Specialist developer underwriters allow the policy period to be extended and can add delay in start-up cover, which meets the extra finance and holding costs a delay brings. Telling the broker early, before the original period runs out, keeps the works covered without a gap.
An existing structure unoccupied under works
On a conversion or refurbishment the existing building is usually empty while the works run. A finished-building property policy restricts or drops cover once premises are unoccupied and being worked on, so the existing structure can fall between a standard policy that no longer applies and contract works cover that only reaches the new works.
Specialist developer underwriters insure the existing structure during the works alongside the contract works, on the understanding that the building is empty and a site. They look for site security, the water drained down where relevant and the structure declared to its full reinstatement value.
Plant, tools and theft from site
An open site holds plant, hired machinery, tools, copper, timber and unfixed materials that are easy targets, and theft from site is one of the most common development claims. Materials waiting to be fixed can also be excluded once they sit on site beyond a stated period, so the works sum insured has to allow for what is stored ready to install.
Specialist cover extends to owned and hired-in plant, tools, temporary buildings and hoarding, and to materials on site, where security matches the value at risk. Underwriters look for secure storage, lockable compounds, lighting and fencing, and rate theft cover against the site set-up you declare.
A completed build standing empty for sale or let
Once the works finish, the development often stands empty while it is marketed for sale or waiting for a first tenant. Practical completion typically ends the contract works cover, but an empty new or converted building still faces theft, vandalism, escape of water and fire, and that void can run for months.
Specialist insurers move the finished building onto unoccupied cover from practical completion until it is sold or let, sized to the length of the expected void. Expect conditions on inspections, the water drained down and security in place, and declare the completed value in full so the building is not under-insured while empty.
Every higher-risk development falls into its own specialist bracket. Compare property developers insurance quotes to see how your own project, works and site are rated across the MyMoneyComparison.com broker panel.
Who needs property developers insurance?
Anyone running a live building or development project needs cover for the works, the site and their liability, not a finished-building policy. Each type of developer leans on a different part of the cover, from the contract works themselves to the existing structure under renovation and the completed building held unsold.
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Property developers
Running new-build or conversion schemes to sell or let on completion. The whole project has to be insured while it is under way, from a bare site through to a finished development, before any sale or letting income arrives.
Lead needContract works / contractors' all risks -
Self-builders
Building their own home or a personal project, often on a JCT or building contract that names who insures the works. The materials, the part-built structure and theft from site all sit with the self-builder until the build signs off.
Lead needJCT / building-contract cover, joint names -
Conversion specialists
Handling change of use, commercial to residential schemes and barn conversions. The existing building is being worked on and often stands unoccupied, which standard property cover excludes while empty and under works.
Lead needThe existing structure under renovation -
Refurbishment and "flip" investors
Buying, renovating and selling on. A short, fast turnaround still means labour on site, a part-stripped building and members of the public passing close by while the work happens.
Lead needPublic and employers' liability on site -
Multi-site development companies and SPVs
Running several projects at once, often through separate SPV structures. Employers' liability is a legal requirement where site staff and labour-only subcontractors are used across each scheme they hold.
Lead needEmployers' liability across projects -
Builder-developers
Both building and developing on their own account, keeping the finished units to sell or let. Once a scheme completes, an unsold or unlet building stands empty and needs unoccupied cover until it changes hands.
Lead needUnoccupied cover for the completed build
Whichever describes your work, the cover follows the project and not the finished building, so the works, the site and your liability are all insured while the build is live. Compare property developers insurance quotes to match a policy to your scheme, contract value and stage of works.
Property developers insurance vs a finished-building policy
A standard property or buildings policy is written for a completed, occupied building. It does not cover a live building site: the works in progress, the contract works and materials, the existing structure while it is worked on and empty, or the liability that comes with an active site. Property developers insurance is built around the project itself, so the cover follows the works, the structure and the site from a bare plot through to a finished development.
Your own cover vs relying on the contractor's policy
A main contractor carries their own liability and often insures the works under the building contract. Even so, the developer usually still needs their own cover, and that gap is sharpest where there is no main contractor, or where the contract puts the works in the developer's or joint names.
The developer's own cover
Held in your name as the developer
- Covers the works where you run the project directly or use trades on a labour-only basis, with no main contractor policy behind you.
- Insures the existing structure you own while it is converted or refurbished, which a contractor's works policy may not extend to.
- Answers JCT joint-names requirements, so the works are insured in the names the building contract calls for.
- Carries the completed development on unoccupied cover after the contractor has left, up to sale or let.
Relying on the contractor's policy
Held in the contractor's name
- Written around the contractor's own liability and trade, not your interest as the developer or owner of the site.
- May exclude the existing structure and rarely covers the building once the contractor completes and hands it back.
- Leaves you exposed where no main contractor is used, or where the contract names the developer as the insuring party.
- Can lapse or fall short on limits, sums insured and site liability that you never see or control.
Running a development on a finished-building policy, or assuming the contractor covers everything, leaves the works, the existing structure and site liability exposed. If a fire, flood, storm or theft hits a part-built structure, or a third party is injured on a live site, cover written for a completed building can decline the claim, and a contractor's policy may not reach the developer at all. The gap tends to surface at the worst possible moment, mid-project, when the sum at stake is highest. Matching the cover to the project, and to who is insuring the works, closes it before the build starts.
Not sure whether your current policy reaches the works and the site? It comes down to whether the building is finished and who insures the works under the contract. Compare property developers insurance quotes and match the cover to the stage your project is at.
Cover detail shown is indicative of how UK property developers and contract works policies are typically structured. It is illustrative only and is not a quotation. Sums insured, extensions and exclusions vary by insurer, project and the terms of the building contract.
Cover for developers running several projects
Once a developer has more than one site on the go, taking out a fresh contract works policy for every project stops being a tidy fit. An annual or multi-project development policy draws every build onto one schedule, with a single renewal date and one underwriting relationship, and prices the programme against the combined risk rather than as a stack of separate policies bought at different stages.
A multi-project developer policy puts two or more building projects on one schedule with a single renewal date and shared liability limits. It works for property developers, self-builders taking on back-to-back projects, conversion and refurbishment investors, and development companies. Premiums are case-rated against the combined programme, the mix of project types and stages, and the claims record, which usually lands on better terms than buying separate contract works cover for each build.
One schedule, one renewal date
Every project sits on a single schedule that renews on one date. Gone is the juggling of separate contract works policies started at different points in the build, each running to its own expiry.
SPV and development company structures
Where projects are held through an SPV (special purpose vehicle) or a development company, the policy needs to be issued in the right name, with directors and any joint-names parties recorded at quote stage. See our property portfolio insurance guide.
Different project types and stages
A new build, a conversion, a refurbishment and a finished build awaiting sale can share the same schedule. The cover copes with projects at different stages without splitting each one onto its own contract works policy.
Case-rated pricing
A multi-project programme is rated on its combined risk, not pulled off a standard table. Insurers weigh total contract works values, the mix of project types, the claims record and the sites to set one premium for the whole schedule.
Shared liability limits across sites
Public liability and employers' liability tend to run on limits shared across every site rather than fixed per project. That generally buys higher headline limits for less than the sum of separate policies bought build by build.
Adding and removing projects mid-term
You can add or drop projects partway through the year, with the premium adjusted pro rata. A new site joins the schedule when work starts and a finished build comes off once it is sold or let, with no wait for renewal and no separate short-term policy.
Any developer running two or more projects stands to gain from a single multi-project policy. Compare property portfolio insurance quotes through a specialist panel used to SPV, development company and multi-site risks.
How to reduce property developers insurance costs
Insuring a live building site is rarely cheap, but a handful of practical moves genuinely bring the premium down without thinning out the cover or cutting corners on the build. Secure the site, use competent contractors, get the building contract in order and set the works sum insured accurately, and the difference across a project or a multi-project programme can be real.
Secure the site and store plant safely
Perimeter fencing, hoarding, site lighting, CCTV and a lockable compound for plant, tools and materials all cut theft and vandalism, the most common development claims. Matching the site security to the value at risk feeds straight into the rate insurers offer.
Get the JCT or building contract in order
A signed JCT or other building contract that sets out who insures the works, to what value and in whose names gives underwriters a clear picture of the project. Knowing whether contract works cover is needed in joint names of the employer and contractor sharpens the terms on offer.
Use competent, referenced contractors
Vetted contractors with a track record, references and their own public and employers' liability cover reduce the chance of damage and injury on site. Recording who is doing the building and checking their cover gives underwriters confidence in how the works are run.
Keep site health and safety in order
Meeting the Construction (Design and Management) Regulations 2015, with a health and safety file, method statements and risk assessments, shows the site is being run properly. A well-managed site with fewer accidents supports better employers' and public liability terms.
Set an accurate contract works sum insured
Insuring the works at the full completed contract or reinstatement value, not the spend so far, keeps the sum insured right as the build progresses and avoids the average clause cutting a claim. An accurate figure stops both over-paying and being under-insured.
Use a specialist property developers broker
Generic comparison sites struggle here because insurer appetite swings so widely by project type, contract value and the works involved. Specialist brokers work the contract works market every day and rate it properly across niche insurers and Lloyd's syndicates.
The biggest savings come from stacking two or three of these together rather than relying on one. Compare property developers insurance quotes to see what your own project, site and works add up to across the specialist panel.
Specialist Property Developers Insurance
Comparing specialist property developers insurance since 2013
MyMoneyComparison.com has been helping UK property developers find cover without the runaround since 2013. Take on a single new build, convert a barn to homes, refurbish a run-down unit to let, self-build your own project or run several sites through a development company, and the same specialist broker panel underwrites development and contract works every day. Compare cover from a panel that knows contract works and contractors' all risks, the existing structure under renovation, public and employers' liability on a live site, and JCT requirements, part of the wider commercial property insurance market.
Generic comparison sites versus specialist property developers brokers
Standard comparison sites are built around home insurance and simple commercial cover. A live building site sits well outside that profile, which is why specialist brokers repeatedly rate the same project more keenly and with cover that actually answers the contract works, the existing structure under renovation, site liability and the JCT requirements mainstream insurers wrestle with.
Standard home and business aggregators
Geared to home insurance and basic SME commercial cover. A development project is usually treated as a non-standard risk, then either turned away or priced at the loaded end of the panel without the works or the site being understood.
Typical limitations- Contract works and contractors' all risks rarely offered
- A live building site treated as a decline
- Existing structure under renovation left out
- JCT non-negligence and joint names not understood
- Multi-project developers beyond the panel
Specialist property developers brokers and underwriters
FCA-regulated brokers who underwrite development and contract works day in, day out. Contractors' all risks, the existing structure under renovation, public and employers' liability and JCT extensions are on the policy from the start, sized to the project and works you declare.
Built around development projects- Contract works, contractors' all risks and existing structure
- New build, conversion, renovation and refurbishment
- Public liability with JCT non-negligence, and employers' liability
- Plant, tools, materials and theft from site
- JCT joint names, multi-project and completed-unsold cover
A quote from a generic comparison site can look sharp yet leave out the cover lines a developer actually needs. Buy it and you may end up insuring only a finished building rather than the works in progress, with the contract works value pitched at spend so far instead of the completed value, the existing structure uncovered while empty, or site liability missing from the schedule, and that is precisely the pattern that leads to reduced or refused claims under the average clause and the Insurance Act 2015. Before you pay, check the schedule matches the project, works and site you genuinely have.
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Everything You Need to Know
Clear answers to the questions that come up most often about property developers insurance.
What is property developers insurance?
Property developers insurance is project cover for someone building, converting or refurbishing property to sell or let. Rather than protecting a finished, occupied building, it insures the works while they are under way: the new or altered structure, the materials and the work in progress, on a contract works or contractors’ all risks basis. Sitting alongside are public and employers’ liability for the live site, cover for plant, tools and site materials, and protection for an older building where one is being worked on. It runs through each stage of the scheme, from a bare plot to a completed development held empty for sale or let.
What does contract works cover on a development?
Contract works, also written as contractors’ all risks, is the core of a developer’s policy. It pays to repair or rebuild the works after damage from fire, storm, flood, escape of water, impact, vandalism or collapse while construction is going on. The cover reaches the permanent works, the materials and goods brought to site for the build, and the work already put in place, so a half finished structure lost to a fire can be reinstated. Temporary works, site huts and hoarding usually attach as well, and free-issue materials supplied by the developer can be included once they are declared.
Does commercial property insurance cover a live building site?
No. A finished-building property policy is written for a completed, standing structure, and its wording limits or excludes building work once the value of that work passes a stated figure, often somewhere between £25,000 and £100,000. A live site carries risks the policy never rated for: an open structure, exposed materials, plant and machinery, and trades moving on and off. Anything beyond minor decoration needs project based cover, so a developer carrying out real building work insures the scheme on a contract works or contractors’ all risks basis instead of leaning on an ordinary property policy.
Is the existing structure covered during a renovation?
Yes, and it is a point developers often miss. When a house is converted or a commercial building refurbished, the existing structure is being altered and is frequently standing empty while the trades work on it, a state that ordinary property cover restricts or excludes. A development policy can insure that existing building alongside the contract works, so both the old fabric and the new work are protected through the project. The existing structure is usually covered for its reinstatement value, with the contract works answering for the alterations and additions being made to it.
How do I set the sum insured for the works?
Insure the contract works for the full contract or reinstatement value the scheme will reach on completion, not the figure at the point the policy starts. The value of the works climbs steadily as materials arrive and labour is put in, so a sum insured pitched at an early stage will fall short once the build is well advanced. Setting it at the completed value keeps the works fully covered right through to practical completion. Get it wrong and the average clause can apply, scaling a claim down in proportion to the shortfall, which is why the completed value is the number to work to.
Does it cover damage to neighbouring property?
Public liability meets compensation and legal costs when the works injure a member of the public or damage property that does not belong to the developer, for example a passer-by hurt near the hoarding or a neighbour’s wall cracked by the groundworks. Limits are commonly written at £2m, £5m or £10m. Because building close to other structures can cause subsidence, vibration or weakening without anyone being negligent, a JCT non-negligence extension can be added to answer for damage to surrounding property caused by the works themselves, which a standard public liability section would otherwise leave out.
Do I need employers' liability on site?
Where a developer employs site staff, and in most cases where labour-only subcontractors are taken on, employers’ liability is a legal requirement carrying a minimum limit of £5m, though policies are normally issued at £10m. It answers claims from workers injured or made ill through the building work. The labour-only point matters on site: a subcontractor who supplies only their labour and works under the developer’s direction is treated much like an employee for this cover, so they must be counted in the wage roll declared to the insurer rather than left out.
What does a JCT contract require for insurance?
Building contracts drawn on JCT terms usually make contract works insurance a condition of the job, and they set out who has to arrange it and to what value. Depending on the option chosen, the works may need insuring in the joint names of the employer and the contractor, so both parties hold an interest in the policy and neither can pursue the other for insured damage. A conversion or extension to an existing building brings cover for that structure into the clause too. Reading the insurance section of the contract before work starts shows exactly what has to be in place and who is responsible for putting it there.
Are plant, tools and site materials covered?
Materials and goods brought to site for the build sit within the contract works, so their loss by theft or damage before they are fixed in place is covered. Plant, whether owned outright or hired in, is insured under a separate section, which for hired items can also answer for the continuing hire charges while a replacement is sorted out. Theft from a building site is a real exposure, and insurers expect sensible security: perimeter hoarding, locked stores for tools and small plant, and lighting or alarms on larger schemes all support a claim and can hold down the cost of this cover.
Is a completed unsold building covered while empty?
When the build finishes the risk does not end. A completed unit often stands empty for weeks or months while it is marketed for sale or waits for a tenant, and an empty building draws its own hazards, among them undetected water leaks, vandalism and squatting. A development policy can carry unoccupied or void cover for this stage, usually on restricted perils and subject to conditions such as regular recorded inspections, draining down the water system and keeping the property secure. Flagging the marketing period to the insurer at the outset avoids a gap opening up between practical completion and the sale or letting.
New build, conversion or refurbishment: what changes?
The three sit on different risk profiles. A new build starts from a clear site with no existing structure to insure, so the cover concentrates on the works, the materials and the site itself. A conversion changes the use or layout of a building that is already standing, which brings the existing structure into the picture and often means working around an unoccupied property. A refurbishment upgrades a building that may still be partly in use, adding the question of occupiers on or near the works. A development policy can be arranged for any of the three, with the mix of contract works, existing structure and liability set to match the job.
Can I insure a self-build project?
Yes. Self-build cover is a recognised form of developer insurance for an individual putting up their own home rather than building to sell. It runs from the point the site is cleared through to completion and typically bundles the contract works, public liability for visitors and passers-by, employers’ liability where any labour is engaged, and theft of materials and plant from the plot. Many lenders offering a self-build mortgage make this cover a condition of releasing funds at each stage of the build, so it is worth arranging before the first spade goes in.
Can I cover more than one development at once?
Yes. A developer running more than one scheme at a time, or a company with a rolling pipeline of projects, does not need a fresh standalone policy for every site. Cover can be written to take in several projects together, either named individually or on a declaration basis where new schemes are added as they start and the premium is adjusted to the value of work carried out. For a development company this keeps the contract works, liability and plant cover consistent across the whole book, rather than leaving each site on separate terms with gaps opening between them.
Is property developers insurance a legal requirement?
Parts of it are, and the rest is usually required in practice. Employers’ liability is compulsory by law once you take on site staff or labour-only subcontractors, with a £5m minimum limit. Contract works insurance is rarely a statutory duty, but a JCT or other building contract will commonly make it a condition of the job, and a development lender will expect the works and the site liability to be insured before releasing funds. So while only the employers’ liability element is strictly demanded by statute, a developer running a real project normally needs the full set to satisfy the contract and the funder.
How is property developers insurance priced?
No two schemes rate the same, so a premium is built up from the details of the project. The contract works value carries the most weight, followed by the type of development, new build, conversion or refurbishment, the length of the build programme, and whether an existing structure is being worked on. The liability limits chosen, the site’s location and its flood exposure, the developer’s experience and claims record, and the amount of plant on site all feed in. Because the mix differs every time, the sound way to gauge the figure is to compare quotes from FCA-regulated brokers against the actual project details.
How can I reduce the cost of cover?
Several levers are within a developer’s control. Setting the works sum insured accurately at the full completed value avoids both overpaying and the average clause, while a realistic build programme keeps the period of cover from running longer than the job needs. Good site security, locked stores, hoarding, lighting and alarms, reduces the theft exposure that drives part of the premium. A clean claims record, relevant building experience and a sensible excess all help, as does arranging the contract works, liability and plant together on one policy rather than buying each piece separately. Comparing brokers keeps the terms competitive.
How do I make a claim on a development?
Tell the insurer or broker as soon as damage, theft or an injury happens, since site claims can move quickly and delay rarely helps. Make the site safe and prevent further loss, but leave the damage in place for inspection where you can, and photograph it before anything is cleared. For theft from site, report it to the police and keep the crime reference number, which insurers ask for on this kind of claim. Have the contract works schedule, the sum insured and any relevant subcontractor details ready. On larger losses a loss adjuster is usually appointed to assess the works and agree the reinstatement.
What is the average clause on a works policy?
Average is the clause that lets an insurer cut a settlement when the works are insured for less than their full value. On a development it bites easily, because the value of the works rises as the build goes on while an under-set sum insured stays put, so a scheme insured at 70% of its completed value sees a claim reduced to 70% of the loss. It applies to a partial loss, such as a fire in one block, just as firmly as to a total loss, and the fix is to insure the contract works at the full completed value from the start.
Does my contractor's insurance cover me?
Usually not on its own. A main contractor’s policy protects the contractor and is arranged for their benefit, not the developer’s, and how far it covers the works can vary from job to job. On many schemes the building contract puts the duty to insure the works on the developer as employer, sometimes in joint names with the contractor. Relying on someone else’s policy leaves you exposed if it lapses, falls short on value or excludes a loss you assumed was covered. Arranging your own development cover, or confirming in writing exactly what the contractor’s policy does for you, closes that gap.
What if the build overruns the policy period?
Building programmes slip, so the policy period should allow for realistic delays and can be extended if the works run beyond it. Letting cover expire while the site is still open would leave the works, the plant and the liability unprotected at the very point they are most exposed. Tell the insurer before the period ends and the term can normally be extended, though a long overrun may prompt a review of the terms. Some policies also offer delay in start-up cover, which answers for the developer’s financial loss when insured damage pushes back completion and the planned sale or letting.
Are temporary buildings and hoarding covered?
Temporary works and site setup are part of the picture. Site huts, welfare cabins, scaffolding, fencing and the hoarding that seals off the works can be brought within the contract works cover, along with the plant kept on site. A plot in its early state, cleared and waiting for the build to begin, carries mainly a public liability and site security risk rather than a works risk, so cover at that stage leans on the liability and theft sections. As soon as materials arrive and construction starts, the contract works value begins to build and the sum insured needs to reflect it.
Why compare property developers insurance here?
Development risks do not fit the standard comparison panel, which is built around home and simple business cover and tends to stumble on contract works, joint names, an unoccupied existing structure or a flood-zone site. Faced with those, an ordinary panel often declines or returns a price loaded to the top of its range. A broker who arranges developer cover every day reads the project properly, matches the contract works to the completed value, sets the liability for a live site and can reach specialist and Lloyd’s markets that rate schemes on their merits. MyMoneyComparison connects you with FCA-regulated brokers of that kind, and does not advise on or sell cover itself.
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