Home Renovation Insurance: What Do You Need?
Insurance during a home renovation is one of the most commonly overlooked aspects of project planning. Many homeowners assume their existing home insurance policy covers them throughout the build — it often doesn't. Here's what you need to know about insurance during a renovation, what your contractor should carry, and how to make sure there are no gaps in cover.
Your Existing Home Insurance — Check Before You Start
Most standard household insurance policies contain conditions that may exclude or limit cover during significant building works. Common exclusions include: damage arising from or during building works; escape of water during works (particularly relevant where plumbing is being altered); accidental damage if the property is unoccupied for extended periods; and theft from an insecure or part-demolished property.
Before your project starts, contact your home insurer and inform them of the planned works. Ask explicitly whether your policy continues to provide full cover during the build, and whether there are any conditions or exclusions you need to be aware of. Get the response in writing. If your insurer won't cover the build period, you'll need to source alternative or specialist cover.
Site Insurance / Contract Works Insurance
Contract works insurance (also called site insurance or all-risks insurance) covers the physical works themselves — including materials on site and work in progress — against damage from fire, flood, storm, theft, and accidental damage during construction. This is the insurance that covers the work being built, not the existing structure.
On a typical domestic renovation, this insurance is usually arranged by the contractor — it's one of the standard elements of a properly-run building contract. Under the JCT Minor Works contract, the contractor is responsible for insuring the works until practical completion. Confirm this before the project starts and ask to see the certificate of insurance.
The Contractor's Public Liability Insurance
Your contractor must carry public liability insurance — this covers the contractor's liability if their activities on your property cause injury to a third party or damage to third-party property. A minimum of £2 million is standard; £5 million or above is preferable for larger or more complex projects. Request a copy of the certificate and check that it is current.
Employer's Liability Insurance
Any contractor employing workers (rather than working entirely alone) is legally required to carry employer's liability insurance, covering their liability to their employees in the event of injury or illness arising from the work. This is a legal requirement, and a contractor without it is in breach of the Employers' Liability (Compulsory Insurance) Act 1969. Check the certificate.
Structural Warranty
For major works involving new build elements, extensions, or basement conversions, a structural warranty (also called a latent defects warranty) provides 10-year protection against structural defects arising from the design or construction. Lenders increasingly require structural warranties on new-build and substantial conversion projects. Ask your contractor whether they offer this — and if not, whether your architect or structural engineer can arrange it.
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