Insuring A Home Renovation: What You Need To Know

Renovating your home can be stressful, and while you might plan meticulously, there's always a chance something could go wrong. So, it's crucial to have the right insurance in place. A standard home insurance policy won't cover you while you're having renovation work done, so it's best to look into specialist renovation insurance. This type of insurance is designed to cover all the additional risks associated with home renovations, such as damage to the structure, theft of building materials, and injuries to those carrying out the work. It can also cover you if your home is left unoccupied during the renovation period, which is an important consideration as unoccupied homes are more vulnerable to risks like fire, theft, and water damage. The cost of renovation insurance will depend on factors such as the expected length of the project, the scope of the work, and the rebuild cost of the property. It's important to engage with your insurer early on and provide them with as much detail as possible to get an accurate quote.

Public liability insurance

• Public liability insurance is designed to protect you if someone is injured or suffers property damage while on your property. This includes injuries caused by tripping hazards, falling objects, or any other renovation-related activities.
• This type of insurance can help cover medical expenses, legal fees, and compensation claims made by the injured party. It is designed to protect you from financial hardship if an accident occurs during the renovation.
• The level of coverage provided by public liability insurance can vary, so it is important to review the policy carefully. Different policies may have different exclusions or limitations, so ensure you understand what is and isn't covered.
• In some cases, your contractor's insurance may provide some level of public liability coverage. However, as mentioned earlier, relying solely on their policy can be risky as it may only cover instances of negligence. It is always best to have your own public liability coverage to ensure adequate protection.
• The cost of public liability insurance can depend on various factors, including the scope and duration of the renovation project, the number of workers involved, and the level of coverage required.
• When purchasing renovation insurance, it is essential to engage with the insurer early on and provide them with detailed information about the renovation project. This helps ensure that you have the necessary coverage in place before the work commences.

Unoccupied property insurance

If you're planning to renovate your home, it's important to ensure that you have the right insurance in place, especially if your property will be unoccupied during the renovation period. Standard home insurance policies typically don't cover unoccupied properties, and some insurers won't cover vacant properties at all. This is because unoccupied homes are more susceptible to risks such as fire, theft, water damage, and vandalism. Therefore, it's crucial to consider unoccupied property insurance.

• Damage to the new building and existing structure due to fire or flooding
• Theft of building materials, tools, and equipment
• Theft or damage to personal possessions
• Damage to neighbouring properties caused by the renovations
• Public liability in case someone is injured at the property during the renovations
• Employers' liability to protect against claims made by workers in case of injury or death
• Subsidence, heave, or landslip during the works

Cost and Money-Saving Tips

• Ask a neighbour or friend to check on the property regularly. Some insurance companies may not consider the home unoccupied if it is regularly visited.
• Install security measures, such as an alarm system. This could earn you a discount on your premium.
• Compare different insurers and their policy covers.

Alternative accommodation

If you're renovating your home, it's important to consider insurance that covers alternative accommodation. This type of cover is essential if your home becomes uninhabitable due to an insured event, such as a flood or fire, and you need to find temporary housing while repairs are carried out. Here are some key things to know about alternative accommodation cover:

The amount of cover provided varies depending on the insurance provider and your specific policy. Some policies offer a maximum figure, typically around £25,000-£50,000, while others offer a percentage of the sum insured on your buildings insurance, usually around 20%. It's important to check the limits and conditions of your policy to ensure you have sufficient cover for alternative accommodation costs.

When choosing alternative accommodation, it's important to consider your needs and requirements. The insurance provider will assess your situation and work with you to find suitable accommodation. Factors to consider include the type, size, and location of the property, ensuring it allows you to carry on with your daily life, such as commuting to work, taking children to school, and participating in regular activities. It's important to note that you must agree on the alternative accommodation with your provider before moving in to ensure your costs are covered.

You can typically claim for alternative accommodation when your home has been damaged by an insured event and is deemed uninhabitable. This could include structural damage, loss of essential utilities like electricity or running water, unusable essential rooms like the kitchen or bathroom, or lack of heating, especially during winter. A loss adjuster may be sent to assess the damage and its impact on your living conditions before approving your claim.

Building material and equipment cover

What is Covered

Transit and Temporary Storage

This cover also extends to materials and equipment in transit to the property or stored at a temporary location. For example, if you have a large delivery of tiles for your new bathroom that are stored in a lock-up garage until needed, they will still be covered under your policy. This aspect of the cover is particularly important if you are managing the renovation yourself and are responsible for purchasing all the materials and equipment.

High-Value Items

If you have particularly expensive equipment or materials, you may need to declare these separately on your policy to ensure they are adequately covered. For example, if you have a high-end kitchen with custom-made cabinets and appliances being installed, you will want to ensure that these are covered under your policy.

Exclusions

As with all insurance policies, there are likely to be exclusions to building material and equipment cover. For example, some policies may not cover equipment or materials that are damaged due to poor handling or incorrect storage. It is important to carefully read through the terms and conditions of your policy to understand any exclusions and ensure you are adequately covered.

Continuous Cover

After your renovation is complete, your building material and equipment cover will typically come to an end. However, some insurers offer continuous cover for a period, giving you time to adjust to your new space and make any necessary changes to your standard home insurance policy. Check with your insurer to see if this is an option and to understand the timeframe for continuous cover.

In conclusion, building material and equipment cover is an essential aspect of home renovation insurance, providing you with peace of mind and financial protection during what can be a stressful and unpredictable time. By understanding what is covered, how it extends to transit and temporary storage, and any exclusions that may apply, you can make an informed decision about the level of cover you require.

Accidental damage cover

Renovation can be stressful, and even with careful planning, there is always a risk of something going wrong. It is therefore important to have the right insurance in place. A standard home insurance policy won't usually cover you for the additional risks associated with renovations, so it's worth looking into home renovation insurance.

If you are renovating your home, it is worth considering purchasing accidental damage cover. While we all hope that building work goes smoothly, there is always a chance that something could go wrong. Whether the floor is accidentally scratched or a fixed appliance is broken, accidental damage cover will ensure you don't have to pay any more than necessary for repairs or replacements.

Accidental damage contents insurance covers your personal belongings, including furniture, household fittings such as carpets, decorative items, and appliances. On the other hand, accidental damage building insurance covers the physical structure of your home, together with permanent fixtures such as windows, doors, bathroom and kitchen fittings, and pipes.

It's important to note that ongoing renovation works are not typically covered by accidental damage insurance. For this reason, it is recommended to get specialist renovation insurance, which can provide protection against damage to structures being built and cover against injury for those carrying out the renovations.

Frequently asked questions