Self-Build Insurance

AAA

DEFINITION of 'Self-Build Insurance'

An insurance policy that provides coverage during the construction of a new home, additional structure, renovation or conversion. Self-build insurance provides financial compensation for setbacks and problems that may occur during the project, such as contractor disputes, accident, injury, death, theft, arson, vandalism and project delays. If the project is being financed with a loan, the lender may require the borrower to purchase self-build insurance.


INVESTOPEDIA EXPLAINS 'Self-Build Insurance'

In addition to covering the project itself, this insurance often covers materials related to the project. It may also provide legal coverage to the insured in the event of a lawsuit related to the project.

This term is primarily used in the United Kingdom and Ireland. In the United States, this product is known primarily as builder's risk insurance.

RELATED TERMS
  1. Self-insure

    A method of managing risk by setting aside a pool of money to ...
  2. Collision Insurance

    A type of auto insurance coverage. Collision Insurance will reimburse ...
  3. Up-Front Mortgage Insurance - UFMI

    An insurance premium that is collected, typically on Federal ...
  4. Premium

    1. The total cost of an option. 2. The difference between the ...
  5. Rider

    A provision of an insurance policy that is purchased separately ...
  6. Insurance

    A contract (policy) in which an individual or entity receives ...
Related Articles
  1. Understanding Your Insurance Contract
    Insurance

    Understanding Your Insurance Contract

  2. The History Of Insurance
    Home & Auto

    The History Of Insurance

  3. The Beginner's Guide To Homeowners' ...
    Home & Auto

    The Beginner's Guide To Homeowners' ...

  4. Preparing Your Finances From Natural ...
    Home & Auto

    Preparing Your Finances From Natural ...

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center