What does renovation insurance cover?

If you are planning to renovate a property, then it is important to note that any existing buildings insurance you have covering that property may need revisiting prior to starting your renovations. This is because any existing cover under your buildings insurance policy could seriously be restricted (and so may only offer the most basic of cover) or even become invalid.

So, before you start anything, advise your current buildings insurance provider of your intentions and see if you are covered. Failure to do so could mean that in the event that you make a claim, it is rejected.

Why is this?

A property undergoing renovation may face additional risks (meaning you are more likely to make a claim) than one that isn’t. For example:

• If the property is not being lived in while the renovations are going on, then typically unoccupied property insurance may be required. This is because the property may be more susceptible to theft and malicious damage.
• The renovation may increase the value of your property substantially
  You may have costly building materials on site that are more vulnerable to theft.
• You may have hired expensive machinery for use during the renovation that will need covering.
• You may need an enhanced level of public liability cover.

A standard owner-occupier or landlord’s buildings insurance policy are not designed to cover these types of risks. That is why renovation insurance is so important — to cover these additional risks and hazards while your property undergoes renovation.

What will the insurer need to know?

When contacting your existing insurance provider or a new one, typically the information they will need in order to calculate the cost of your renovation insurance may include:

• Details of your renovation plans including an estimate of costs
• How long you expect the work to take
• Who is carrying out the work
• Whether the property is going to be unoccupied and for how long

Where you can you buy the cover?

If your buildings insurance provider cannot extend your policy to cover renovations, then there are a number of specialist providers who do. If you carry out a quick Google search, you will see there are several to choose from.

Do note that policy features and benefits may vary depending on the policy provider, so never assume when comparing the cover that they are on a like-for-like basis.

Anything else you need to know?

When choosing your cover, do make sure you fully understand the policy exclusions and also any obligations you may yourself have under the cover (such as making sure the property is properly protected from wind damage or that certain aspects of additional security are carried out).

Some renovation policy providers have options to extend the cover — so if you buy a policy to cover 3 months’ worth of work and it runs over, the policy can usually be extended to 6, 9 or 12 months.

So, no matter whether you are carrying out the renovation yourself or contracting it out, speak to your current buildings insurance provider before you start, to ensure your project and your investment will be fully covered.