ProAktive launches new Property Developer Policy on Marketplace
The Covid-19 pandemic has left all business markets feeling uncertainty. Before the pandemic consumed all our lives, around 1 in 7 people were considering building their own home. In fact, the government was beginning to actively encourage self-built dwellings, with a view to increasing the supply of affordable housing in the UK. While up until that point only 8% of houses in the UK were self-built, modern construction methods, relaxed regulations and an increasing number of lenders offering comprehensive mortgage options for self-builders meant that the market was growing all of the time. Before lockdown hit, over 40,000 people were registered on the government’s ‘Right to Build Scheme’, which allows local authorities to make land available to self-builders, instead of selling it to developers.
Although these market conditions have stifled house building in the UK recently, the need for good quality and affordable housing has never been greater. According to Hanley Economic Building Society it is reported that there has been a 35% rise in self-build advances over an 18-month period running from the beginning of January 2019 to the end of June 2020.
When it comes to having the right cover in place for these types of projects it’s important to work with experts that understand that changing landscape, which is why we’re delighted to work with ProAktive to launch their new Developer Insurance Policy as the latest addition to our ‘hard to place’ product set on Aviva Marketplace.
The new developer policy complements ProAktive’s existing Self-Build policy which they’ve been running successfully for 13 years.
The progress in this sector is important as regulation and legislation moves forward. The Right to Build Day, on 30 October 2019, marked the date when the 336 Planning Authorities in England demonstrated for the first time that they’ve complied with the legislation to deliver the 18,000 permissioned plots needed to match the numbers on their self-build registers at 30 October 2016.
In 2018/19 165,000 homes were built, split between private enterprises, housing associations and local authorities. However, it is estimated between 300,000 and 340,000 per year are required to keep up with demand and an ever-growing population.
How does ProAktive’s developer policy stand out from other providers?
A key feature of the policy is that it can cover existing structures as well as the new works and can combine the whole build under one policy. The existing structure isn’t just restricted to FLEA (Fire, Lightning, Explosion and Aircraft impact) so they can provide wider cover for all elements of the project which also includes public/employer’s liability and plant where required.
ProAktive have extensive and in-depth knowledge of the building process and the issues that arise. They take great pride in the service they provide and are always available to discuss your customers’ requirements and clarify anything you are unsure on. You can read some recent customer reviews here.
What types of projects can you cover?
ProAktive specialise in the unusual! If the property is to become residential on completion, they can cover most types of builds. Commercial to residential, non-standard construction, part-built properties and those that involve more intrusive forms of building work such as excavation, piling and underpinning.
If your customer is undertaking a new build, renovation, extension or conversion with the intention of selling or renting the property this policy can cover it.
How does the developer policy differ from the existing ProAktive self-build policy?
The developer policy is very similar in terms of the cover provided, however unlike the self-build policy which ends on completion of the project, the developer policy allows a further 90 days - after being signed off or until renewal - for the customer to sell or rent out the property.
How do I get a quote?
Currently quotes are provided by completing a fact find, which can be obtained by accessing www.selfbuildinsure.co.uk/developer-insurance and emailing it to firstname.lastname@example.org. Quotes can be turned around within 24 hours but often much quicker. ProAktive are also in the process of building an online portal to be completed this year, which will allow you to quote and bind cover.