Why Renovation Insurance is Crucial?
- Holly
- 3 days ago
- 2 min read
Renovation insurance is a specialist policy designed to protect a property while building, structural, or refurbishment works are underway. Renovation Insurance provides different cover from a Home Insurance policy where the latter will restrict cover on properties undergoing work which could mean you’re actually ‘off risk’, whereas a renovation policy is there to ensure that there are no gaps in cover and that you have comprehensive protection whilst works are being done to the property.
A comprehensive renovation insurance policy typically includes:
Comprehensive Building Protection: Protection against damage to the existing structure and the new works being undertaken. Home and unoccupied buildings insurance will restrict / exclude cover to the building when the property is undergoing work – which is why a renovation insurance policy is needed because it offers all-risks protection.
Contract Works: Works that are being done including unfixed materials and materials that are being directly purchased by the client.
All-risks protection: Provides cover for all physical loss and damage including but not limited to the following perils, theft of materials, tools, and equipment from the site, as well as malicious damage, fire, flood, escape of water, storm, accidental damage and subsidence.
Optional covers: Contents, own plant, hired in plant, advanced loss of rent, non-negligence liability, terrorism and increased public liability
Public liability insurance: Covers injury or damage claims made by third parties, such as neighbours or passers-by, resulting from the renovation works.
Non-negligence insurance (optional): Covers unforeseen damage to neighbouring properties caused by your renovation works, even if no party is found negligent.
Some policies can also extend to cover delays in completion, unoccupied property periods, and temporary site accommodation.
Why Is Renovation Insurance Beneficial?
1. Protection Beyond Standard Home Insurance: Most standard home insurance policies become void if major works are carried out without informing the insurer. Renovation insurance bridges this gap, offering dedicated protection throughout the project.
2. Safeguarding Your Investment: Renovations are often costly. Should anything go wrong – such as any of the perils mentioned above – the financial repercussions could be significant. Renovation insurance ensures you are not left out of pocket.
3. Compliance with Lenders and Contractors: If you have a mortgage on the property, your lender may require proof of appropriate renovation insurance before work begins. Many professional contractors will also expect the project to have suitable cover in place before they start.
4. Peace of Mind: Undertaking renovation work can be stressful enough without worrying about unexpected mishaps. Renovation insurance provides vital reassurance, allowing you to focus on the exciting parts of the project. Renovation insurance is a crucial safety net for anyone undertaking property works, large or small. It protects against the specific risks posed during building projects and ensures that both your investment and your future plans remain secure. Before embarking on your next renovation, make sure you have the right cover in place to build with confidence.
We partner with Renovation Plan who are a specialist Renovation Insurance Broker. You can discuss your renovation plans with them and obtain a policy suitable for your needs.
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