Guide to home insurance during renovations
An increasing number of people are looking to make improvements to their properties.
By Alan Boswell Group
- What does standard buildings insurance cover?
- Do I need buildings insurance for renovations work?
- What is not covered under buildings insurance for extensions or renovations?
- When should I tell my insurer about extensions or renovations?
- What insurance do I need if my property is unoccupied?
- What to do when building work has been completed
- Buildings insurance for renovation checklist
In this article
- What does standard buildings insurance cover?
- Do I need buildings insurance for renovations work?
- What is not covered under buildings insurance for extensions or renovations?
- When should I tell my insurer about extensions or renovations?
- What insurance do I need if my property is unoccupied?
- What to do when building work has been completed
- Buildings insurance for renovation checklist
Home renovations in the UK are booming, and the trend shows no sign of letting up, according to a report from Houzz. Over half of the country’s homeowners have invested in property upgrades, ranging from giving the interior a lick of paint and upgrading internal doors to investing in major extensions or loft conversions.
While a standard home insurance policy typically covers simple DIY projects, you should exercise caution when undertaking larger projects. If you start certain works, particularly structural projects, without telling your insurer, you could invalidate your building insurance. It may also make it more difficult to get additional cover for your project, such as unoccupied property insurance.
In this article, we take a closer look at how insurance during a renovation project works, giving you peace of mind whether you’re a homeowner realising a dream or a landlord upgrading a property in your portfolio.
Why renovations can impact your home insurance
Renovating a home can be both exciting and extremely demanding. If you’ve ever completed a large project, you’ll know how much time it takes up. From drawing up plans and choosing materials, through to hiring specialist equipment or finding contractors, there’s always something that needs to be done. So, it’s not surprising that many people forget to check whether their home insurance remains valid.
If your renovations are not simply cosmetic, it’s unlikely they will be covered by your home insurance. Worse, they may even void your cover. This is particularly likely if your project:
Significantly increases the risk of damage or loss. For example, renovations that involve structural alterations may increase your home's vulnerability to fire, water damage, structural damage, or theft.
Increases liability. This will be a factor if you have third-party contractors on-site, which increases the risk.
Unoccupancy. If you move out of your home for an extended period while renovations are taking place, an empty property increases the risk for the insurer.
Leaves the property unsecured. If you have removed doors or windows and the property can no longer be kept secure, your policy will be invalid. You may also find that a specific renovation insurance policy won’t provide cover until the property can be made secure.
After your renovation project has finished, it’s also worth bearing in mind that it is likely to increase your home’s value. If this happens, you should consider increasing the amount of cover provided by your home insurance policy, as well as adding additional contents cover for any new furniture.
Informing your insurer about renovations
As a rule of thumb, you won’t need to tell your insurer if you’re doing cosmetic work. So, if you’re painting the spare room, installing shelves, or laying flooring, you won’t need to let your insurer know. That said, you might want to check that your home insurance policy includes accidental damage cover in case of any DIY mishaps.
However, if you’re planning more ambitious alterations, you must inform your insurer before works start. This allows you to make sure you have the right cover in place at the outset. Failing to disclose renovations can also invalidate your existing home cover, so it is best to speak to your insurer before starting any work.
Types of renovations that may require additional insurance
Many types of renovations are likely to require additional insurance to your standard cover. Common projects of this kind include:
Structural alterations such as removing load-bearing walls and replacing them with beams or lintels to create open-plan living spaces. Similarly, adding French or bifold doors or replacing or reconfiguring staircases can involve structural considerations.
Loft conversions. These often involve adding dormers or raising the roof, requiring reinforcing joists or alteration of rafters. Floors usually need upgrading to support new loads.
Basement conversions. If you need to excavate or underpin foundations, these projects become major structural work. You may also need to install waterproofing and supports, such as steel columns.
Kitchen or bathroom installation. These projects vary in complexity. It’s always safest to give your insurer a call to get advice before you start work.
Extensions. These can range from simple conservatories to adding a multi-story extension to your existing property. Additional insurance is always wise, especially if you’re having to add new foundations, structural walls, and roofs.
Chimney removal. Chimney structures often support other parts of the house, so removing them often requires you to install steel supports.
It’s also worth noting that you should notify your insurer if you intend to start work on a project that needs planning permission, as you will almost certainly need additional insurance. If you’re unsure if your policy covers the work you have planned, it is always best to check with your insurer or broker before starting work.
Additional cover options to consider during renovations
Depending on your renovation project, you may need to consider one or more of the following types of additional cover. Some of these can be added to a specialist home renovations insurance policy:
Unoccupied property insurance. If you move out during renovations and your property is going to be left empty for more than 30 days, it’s likely you’ll need unoccupied home insurance. Policies will generally cover fire, flood and water damage, plus contents (if relevant). Note that properties must be secure and watertight to qualify for unoccupied property insurance, and there may be additional requirements (such as checking the property at certain intervals).
Public liability insurance. This protects you against claims if a member of the public is injured on your property during renovations. If you are using contractors, they should have their own public liability cover.
Increased contents cover. If you're storing valuable items on-site during renovations, you may need to increase your contents cover.
If you do use one or more contractors for your renovation project, then it’s important to check that they hold the correct insurance.
Key considerations when choosing a contractor
It goes without saying that you need to choose reputable and properly insured contractors to work on transforming your property. When choosing a contractor, always do your research first. Ask family, friends, neighbours, and colleagues for recommendations first. If you know professionals such as architects, surveyors, or structural engineers, it’s worth asking them for recommendations too.
For every recommendation you get, it’s worth doing some due diligence on each potential contractor to learn more about them. There are various reputable online platforms where you can find out about different tradespeople and companies. These include:
It’s also worth looking online and at social media for reviews about any trader. Consistently bad feedback is always a red flag.
Once you have a shortlist of contractors, it’s important to check their credentials (such as references and trades association memberships) as well as their insurance. In terms of the latter, they should hold public and employers’ liability insurance (if they have employees). Ideally, they should also have contractors’ all risks insurance, covering any damage they may cause to your property, as well as protecting their own tools and equipment.
Finally, when you have chosen a contractor, always review their contract before signing it. It should include details of insurance cover and liability.
Tips on protecting your home during renovations
Renovations cause upheaval, especially if you need to move out while they are being completed. While insurance is key to minimising risk to your property, there are also practical steps you can take to protect your home. These are our top five tips:
Secure your property. Do everything possible to make the site secure. Make sure all doors and windows are securely locked, use electronic security systems where possible (wireless doorbells make real-time CCTV highly affordable) and limit site access. If possible, ensure tools and equipment aren’t visible from the street. Also, don’t post progress of your renovation on social media, as it may make your property an easy target.
Protect valuables. Where possible, move valuable items to a safe location which is, ideally, off-site.
Ensure fire safety. Take extra precautions to prevent fires. For example, keep flammable materials away from heat sources or store them off-site. Turn off gas where possible and install temporary smoke detectors in work areas.
Prevent water damage. Seal off areas where plumbing work is being done and turn off water at the mains if it’s not being used.
Undertake regular inspections. Regularly inspect the site to check for any potential security or safety issues. Also, use the time to inspect the work being undertaken to ensure it is being carried out safely and to a high standard.
What to do after the renovations are completed
When renovations are finished, your first priority is likely to be enjoying your new home! However, don’t forget that your property will now have a higher rebuild value. For this reason, take time to get in touch with your insurer and review your cover. Be sure to do the following:
Notify your insurer. Let your insurer know that the work is complete. They will be able to terminate cover you no longer need, such as renovations insurance or unoccupied home insurance.
Update your cover. Ask for help with adjusting your buildings insurance to reflect the increased rebuild value of your home. It’s also a good idea to review your contents insurance cover, especially if you’ve purchased new furniture, carpets, or other items.
Review your policy. When your insurer issues you with an updated policy, check it carefully to make sure it accurately reflects the changes to your property.
Buildings insurance for renovation checklist
At every step of your renovation or extension journey you need to make sure you have ticked off the following:
Inform your insurer before the work starts.
If they cannot provide buildings insurance renovation cover find an insurer who can.
Check that you have all the cover you need.
If the property is going to be unoccupied take steps to make it as secure and safe as possible, especially overnight.
Check with any contractors and tradespeople who will be on site that they have adequate public liability insurance.
When the work is complete get an accurate cost to reinstate your home at its rebuilding cost, not market value.
Inform your insurer the work has finished and take out standard home or landlord cover.
FAQs
We’ve pulled together some of the most common questions we get asked. Hopefully, this helps you find the information you need quickly and easily.
No, normal home insurance will not cover damage caused by your contractor. You should make sure that your contractor holds adequate insurance and speak to your own insurer if you need further advice.
Yes, you are likely to need additional insurance when an extension is being built. This is because this kind of work is associated with higher risks of structural damage, flood, fire, and theft.
If your home is going to be unoccupied, it’s likely that you’ll need empty property insurance. Your broker or insurer will be able to advise you.
If you’re undertaking renovations, it’s always best to speak to your broker or insurer for advice on whether you need additional cover. Many insurers offer specialised home renovations insurance, although if it’s for a buy-to-let property, it’s important to mention you need landlord renovation insurance. Home renovation cover can be tailored to the length of time the project will take, and you can choose to include insurance such as empty property and liability covers.
The most important thing to remember is that you should always check with your insurer before beginning a renovation project. If you don’t, you run the risk of invalidating your residential or landlord buildings insurance cover.
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