Home renovation and extension insurance explained

Whether you’re giving your kitchen a makeover or planning major building works it’s essential to have the right insurance. Calculating insurance premiums is all about calculating risk and with tradesmen working on your property the risk can go through the roof. Not only are the chances of making a claim much higher, but claims tend to be costly.

Nightmare stories of ‘builders from hell’ are never far from the headlines and damage to the fabric of a building can have catastrophic consequences.  Working with heat, electricity and water can be risky, plus there are security questions raised by having unfamiliar faces in your home (not to mention the fact that tradesmen’s tools and building supplies make tempting targets for thieves).

Add in the fact that homeowners often want to escape the chaos, leaving the property unoccupied, and it’s easy to see why you’ll need to speak to your insurer before work begins.

Minor works As a rule of thumb you can expect most home insurance policies to cover minor works, such as fitting a new kitchen or bathroom, but it’s essential to double check with your provider.Terms and conditions vary, but you’ll often find that policies will cover building works up-to £25,000 provided you aren’t making any structural alterations and you keep your insurer informed.

Mid-level works Larger projects which might affect the structural integrity of a property, such as a loft conversion or ground floor extension, won’t be covered by standard home insurance and you’ll need cover from a specialist provider.

In most instances the insurance burden will be split between the homeowner (responsible for the property) and the contractor (responsible for the building works) which means you’ll need to make sure that your contractor has the right insurance. Once the building work has been completed, and the project signed-off, the insurance liability for the entire property rests with the homeowner.

Major works More complicated and costly building works, such as a basement extension or barn conversion, will need bespoke cover from a specialist underwriter. In most instances the project will be insured by both parties and policies tend to be written on an ‘all-risks’ basis.

Admittedly things can get complicated and it’s a good idea to ask a trusted broker to walk you through the process. Not only will you get access to a wide range of specialist policies, but you’ll also get the peace of mind that you’re completely covered. Quoteline Direct have been helping homeowners find the right insurance for nearly half a century. To find out more, or to get a competitive quote, visit our renovations and building works insurance pages or Tel: 0161 874 7747 to speak with a member of our team.

Once the work is complete don’t forget to get in touch with your home insurance provider to adjust the rebuild cost of your property to reflect the new work.