You’ll need to tell your insurer about any changes or alterations you’re planning on making to the structure of your home. Things like extending a room, adding a conservatory, or doing a loft conversion.
Your insurer doesn’t need to know about cosmetic changes to the interior of your home, like painting the walls, re-tiling your bathroom, or putting up some shelves.
For any significant home renovation or building work, you must inform your existing home insurance provider and secure specialist renovation or building works insurance. Standard home insurance policies typically will not cover large-scale projects and could be invalidated if you do not declare the work.
We hear time and time again, “I thought my home insurance would cover that,” or “Isn’t that for my builder’s insurance?”
Start by contacting your existing insurer. Notify your home insurance provider as soon as you begin planning your project. Provide details such as the project’s scope, cost, and timeline. Even if your insurer continues your policy, they may reduce your coverage to only fire or explosion damage during the works.
You will probably need to take out additional insurance, but you may be confused about the many different types of policies available and whose responsibility it is to take them out.
Here we look at the different insurance policies that should be in place to ensure your home is adequately protected when having works undertaken.
Home Insurance
Who takes it out: Homeowner
Most home insurance policies do not automatically allow for major renovation projects or alterations. It is important when planning any works that homeowners contact their buildings insurer before any work begins. Questions to consider are;
- Will they need to move out whilst works are ongoing?
- Will there be elements of the property open to the elements whilst works are underway?
- What will be left in the property (in terms of stock, materials, tools, etc)?
- Is there an increased chance of contents being damaged?
- Will the value of the property change once the works are completed?
Failing to speak to your home insurer could invalidate the policy if a claim occurs, potentially leaving you with some large repair bills!
Public Liability
Who takes it out: Builder
This is an annual policy that all building companies or contractors should have in place to provide cover for accidental damage to third-party property, or injury to a third-party individual during the course of the building works.
It is there to provide peace of mind, so that should an accident happen – like someone drilling through a water pipe and causing water damage, or a homeowner tripping over materials and suffering an injury – your builder knows that protection is in place to meet the cost of the damage incurred.
If a contractor is working for the council or a commercial business, they will probably need to submit evidence of their Public Liability cover when they tender for the job. Any contractor working for any private individual should be ready to show that they have cover in place, as this can help show how professional their business is.
Contract Works
Who takes it out: Builder
Contract works covers the builder for accidental loss, damage, or destruction to the new works in progress, for the type of events that home insurance would normally cover – things like flood, fire or theft.
This insurance means that the building works can continue, even if there is a disaster that takes place, without either the contractor or the homeowner suffering financial loss.
It is worth noting that contract works does not cover the existing structure; the homeowner will still need the relevant home insurance to be in place.
Insurance Backed Guarantee or Warranty
Who takes it out: Homeowner or Builder
There are various warranty products on the market, including Insurance Backed Guarantees and warranties, designed to protect homeowners if defects arise in completed works, and the building company is no longer there to come back and put these things right. Covering anything from roofing works to two-storey extensions, this policy is there to provide consumers with peace of mind and can help builders stand out from the crowd and show that they offer a quality service.
Unoccupied Property
Who takes it out: Homeowner
You may have decided to temporarily move out of your home while the works are taking place, leaving the property for longer than your home insurance permits.
As well as Unoccupied Property Insurance options for properties awaiting sale, letting, or conversion, you can also get Unoccupied Property Insurance for Properties undergoing structural renovation.
Fire, storm, flood, theft, vandalism, water, or oil leaks from burst pipes, as well as Impact from falling objects or vehicle collision, can all be covered under Unoccupied Property Insurance.
For real peace of mind, we’d advise you to seek advice from your insurance broker or from a specialist insurance provider.
