Why do Property Developers Need Specialist Insurance Advice?

property developers insurance advice

It’s easy to think that Property Developers Insurance is a luxury, but what happens when things go wrong and you find out that neither your sub-contractors nor yourself have the right level of protection? At best it could cost you additional budget, at worst it could jeopardise the whole project or even send you into bankruptcy.

This is why speaking to an Insurance broker that understands Property Development cover inside out is an investment worth making.

What is Property Development

Property Development is the process of improving or building property from scratch, usually as an investment or source of income. There are three mains types of ways to make money from developing a property yourself.


Flipping usually involves buying run down or derelict property, investing time and money in refurbishing and selling on. To make it work you need to ensure that the profit you make will cover your costs, time, expenses and taxes liable. It can be very lucrative, but it can also swallow up your budget and you could end up with little return.

Investing in Property for Long Term Gains

This involving buying property in the knowledge that if you hold onto it for at least the medium-term, your property value will likely go up. You may not have any plans to sell the property, but keep it to pass down to your children or you may see it as a way of adding to your pension or to simply increase your overall wealth. You would likely rent the property out and receive and income also, but this isn’t your main aim.


Property can provide a good income stream, particularly if you have built up a portfolio. In this case, unless you have a lot of cash at your disposal, you would usually mortgage these properties so that very little of your own money is left in. Word of caution though, it’s imperative that you understand your running costs, taxation obligations and any maintenance costs.

If you don’t you may find that any rental income leaves you spending money rather than making it! It’s often better to go for areas where the housing market is cheaper and rental prices strong so you can purchase a portfolio to spread the risk, particularly when you consider periods of time when a property may be empty, or you could end up with a tenant that causing issues through non-payment of rent.

What Property Developers Insurance do I Need?

The best advice is to speak to a knowledgeable Property Insurance Broker such as Goldcrest. Each project is unique and it’s therefore a good idea to discuss this project thoroughly so that the insurance options can be explained.

Some Popular Types of Property Developers Insurance:

  • Public Liability Insurance
  • Legal expenses cover
  • Halt to works on site
  • Cover for fixtures and fittings
  • Loss of rental income
  • Loss of Mortgage Interest
  • Contractors All Risk
  • Contractors Insurance

The exact type of cover needed depends on whether you require cover for a building or refurb project, ongoing cover for property that has been rented out, specific requirements such as high risk, asbestos or differing types of commercial insurances.

If you have a number of properties that are currently rented, then you may want to consider portfolio property developers insurance which covers all of your properties under one policy. This makes for a lower overall premium.

I can therefore confidently recommend Goldcrest Insurance to anyone that wants good affordable insurance with great customer service.

- Greg Newman - DOR-2-DOR

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