Developer insurance? Does it exist?

[de nero]

Hey guys

I would like to do a small development. Is it possible to purchase insurance to

cover myself in the event that the builder becomes insolvent during the build

process or he's dishonset and disappears with my money, or any other similar

situation?

 

[Propertunity]

I think the fact that you will pay progress payments to the builder at various contracturally agreed % complete stages would be your best insurance (so you are only paying for what is completed).

Other than that, you can take a bank guarantee from the builder (which is pretty common).

Bear in mind, many more developers go bust leaving the builder in the lurch, than the other way around. He may well want protection from you.

I don't know of any insurance product for this purpose.

 

[Ed Barton]

isn't there bsa protection here?