Renovation Insurance – do you have the right cover?

As a Private Client Insurance Broker for over 20 years, specialising in High Value Home insurance, it is imperative to truly understand Renovation Insurance. I have been lucky enough to experience all forms of building projects, from extensions/renovations, to listed building restorations and complicated basement builds. Every project is different, and yet there are common questions that come up regardless of the style and scope of project:

• Will my home insurance will cover me?

  Most standard home insurance policies will authorise works up to £50,000 or slightly higher within a High Value Home Insurance policy, but once the limit is exceeded, an insurer will withdraw their cover, so it is important to inform your home insurer if works are to begin.

• What is Renovation Insurance?

  Renovation insurance is a bespoke product to cover the existing structure, the works and any crossover between the two. The cover for the existing structure should include perils such as storm, subsidence, fire, escape of water and the cover for the works should include materials, malicious damage, theft and public/employers’ liability.

• What is the main benefit of a Renovation Insurance policy?

  In the event of a claim, the homeowner is in control of the policy, so has direct access to the insurer. Plus, as the existing structure and works are insured together, the policy is immediately activated, and repairs can begin promptly.

• What is a JCT Contract?

  This, like other forms of available contracts, is designed to manage all details of the works between a contractor and employer. It should clearly state all responsibilities. I would always advise that the employer (homeowner) is responsible for the insurances.

• The builder has their own insurance, so why do I need to cover the renovations?

  Builder’s insurance protects their work and liability, but your renovation coverage is needed for the actual structure and materials—especially since the JCT contract likely names you as responsible and because proving builder negligence for structural damage is extremely difficult.

Carl’s bonus tips

In my experience, using a quality, well established contractor is key, especially in the higher end sector that we specialise in (works starting from £500,000). The reasons are:

1. They are far more knowledgeable in terms of true/realistic costs and timeframes.
2. There are multiple documents renovation insurers will require such as GANTT Charts, Schedule of Works, Fire Risk Management Plans etc, but a non-specialist builder may not understand the need for or be able to provide these.
3. The work will be done correctly, and they will come back to undertake any snagging.

Additionally, as an experienced insurance broker, sadly, I have seen too many renovation claims, so working with a Chartered Insurance Broker like Macbeth, who can assist and advise from the beginning, is incredibly beneficial in helping you risk less.

If you’d like to know more about Renovation Insurance, High Value Home Insurance or insurance for specialist builds, I’m always available on 0118 916 5487 or carl.sharp@macbeths.co.uk.