Renovation Insurance – do you have the right cover?

As a Private Client Insurance Broker with more than 20 years’ experience specialising in High Value Home Insurance, I understand just how important it is to have the correct protection in place during a renovation project.

Over the years, I have been fortunate to work with clients undertaking all types of building projects, from extensions and home renovations to listed building restorations and complex basement excavations. While every project is unique, the same questions arise time and again, regardless of the size or scope of the works.

Key takeaways

Will My Home Insurance Cover Me During Renovations?

Most standard home insurance policies will permit building works up to around £50,000, with some High Value Home Insurance policies allowing slightly higher limits.

However, once those limits are exceeded, insurers will often withdraw or significantly restrict cover. This is why it is essential to notify your insurer before any work begins. Failing to do so could leave you uninsured in the event of a claim.

What Is Renovation Insurance?

Renovation Insurance is a specialist policy designed to protect both the existing structure of your home and the renovation works themselves, while also addressing the areas where the two overlap.

Cover for the existing structure typically includes risks such as:

• Fire
• Escape of water
• Storm damage
• Subsidence
• Alternative Accommodation

Cover for the works generally includes:

• Building materials
• Theft
• Malicious damage
• Public liability
• Employers’ liability

This comprehensive approach ensures that all aspects of the project are protected under a single policy.

What Is the Main Benefit of Renovation Insurance?

One of the key advantages of a Renovation Insurance policy is that the homeowner remains in control.

In the event of a claim, you have direct access to the insurer and can manage the claims process yourself. Because both the existing property and the renovation works are insured under the same policy, cover responds immediately, helping to avoid disputes and allowing repairs to commence without unnecessary delay.

What Is a JCT Contract?

A JCT contract, along with other forms of construction contract, is designed to clearly define the responsibilities of both the contractor and the employer (the homeowner).

The contract should outline every aspect of the project, including who is responsible for arranging insurance. In my experience, it is always preferable for the homeowner to take responsibility for arranging the insurance cover to ensure their interests are fully protected throughout the project.

My Builder Has Insurance. Why Do I Need Renovation Insurance?

This is one of the most common misconceptions.

A builder’s insurance policy is designed to protect the contractor’s work and liabilities. It is not intended to provide comprehensive protection for your home, your project, or your financial interests.

Renovation Insurance protects the existing structure, the works in progress, and the materials on site. In many JCT contracts, the homeowner is specifically responsible for arranging this cover. Furthermore, establishing negligence against a contractor following structural damage can be a difficult and lengthy process, making dedicated renovation cover essential.

Carl’s Top Tips

Having worked alongside countless renovation projects, I’ve found that choosing a reputable and experienced contractor is one of the most important decisions you can make, particularly for the high-value projects we specialise in, typically starting from £500,000.

Here’s why:

1. More Accurate Costings and Timelines

Experienced contractors are far more likely to provide realistic budgets and achievable project schedules, helping to avoid costly surprises later.

2. Better Project Documentation

Renovation insurers often require detailed documentation, including:

• Gantt charts
• Schedules of works
• Fire Risk Management Plans
• Method statements and supporting risk information

Specialist contractors understand these requirements and can provide the necessary documents quickly and accurately.

3. Higher Quality Workmanship

Established contractors have a reputation to protect. They are more likely to deliver high-quality work and return promptly to address snagging issues once the project is complete.

4. Don’t forget to include the professional fees

Most homeowners insure the renovation project based on the total value agreed with the contractor, but within the contract it usually states the Employer (Homeowner) must include professional fees which usually equates to around an additional 15%.

Why Professional Advice Matters

Sadly, throughout my career, I have seen too many renovation projects result in significant insurance claims.

Having a Chartered Insurance Broker involved from the outset can make a substantial difference. At Macbeth, we work closely with our clients to identify risks early, arrange the correct protection, and provide guidance throughout the renovation journey, helping to reduce both financial and practical risks.

Need Advice?

If you’d like to discuss Renovation Insurance, High Value Home Insurance, or insurance solutions for specialist building projects, I would be delighted to help.

Email Carl at carl.sharp@macbeths.co.uk or call us on 0118 916 5480.

The right insurance won’t stop things from going wrong, but it can make all the difference when they do.