Planning a home renovation is an exciting time, but with all the decisions to make, it’s easy to overlook a critical detail: your insurance. Whether you’re simply redoing a kitchen or tackling a major extension, a standard home insurance policy may not provide the protection you need. In fact, many policies can be invalidated by building works, leaving you vulnerable to significant financial loss. So, before you start knocking down walls, here’s what you need to know about navigating insurance for your home renovation.
Don’t Assume Your Home Insurance Has You Covered.
It’s a common misconception that your existing home insurance will protect you during a renovation. Unfortunately, this is rarely the case. Most home insurance policies exclude damage caused by building works. Without the proper coverage, you could be held liable for property damage, injuries to workers, or even damage to a neighbour’s property.
To ensure you’re fully protected, you may need a ‘specialist works’ insurance policy that covers your existing home, the renovation works themselves, and your legal liability.
Get the Right Insurance from the Start
Planning is key. You should begin thinking about your insurance needs at the same time you’re getting quotes from builders.
Here’s why:
• Take Control: Relying on your contractor’s insurance is a huge risk. Their policy might not be sufficient, and if they make a mistake that invalidates their coverage—like failing to disclose a prior claim—you could be left to cover the costs yourself, as one homeowner tragically learned after his house collapsed. By managing your own insurance, you stay in control of the claims process and have peace of mind.
• Avoid Gaps in Coverage: Using separate insurers for your home and your renovation project can create gaps in coverage that may cause problems during a claim. A single, comprehensive policy that covers both your home and the works is the best way to ensure a smooth process.
• Give Yourself Time: Arranging specialist works insurance can take longer than you might expect, so don’t leave it until the last minute. This type of insurance can be complex, and a good insurance broker will need time to get all the information needed to secure the right policy for you.
Vet Your Professionals and Paperwork
Insurance can’t protect you from a bad contractor. Before you hire anyone, be sure to:
• Check References and Credentials: Ask for examples of their work and verify their financial stability. Insurance won’t protect you if your contractor goes bust or does a poor job.
• Use a JCT Contract: A JCT (Joint Contracts Tribunal) contract is a standard legal agreement used in the construction industry. It clarifies responsibilities, payments, and how to handle disputes, including insurance requirements. Using one can help resolve any disagreements or claims quickly.
• Consult a Solicitor: For complex projects, it’s a good idea to seek legal advice. A solicitor can review your contracts and make sure you’re aware of all your legal obligations, especially concerning building regulations and health and safety laws.
Budget for the Unexpected
Renovation projects often go over time and over budget. In fact, on average, most projects take 25% longer than planned. It’s smart to:
• Allow Extra Time: When setting up your insurance, give yourself a cushion. Most policies offer a refund for unused coverage if your project finishes ahead of schedule, subject to no claims.
• Set Aside a Contingency Fund: Unexpected costs can pop up. Experts recommend setting aside at least a 20% contingency fund. This can also be insured, so be sure to include it when calculating your total project costs for your insurance policy.
Remember Your Neighbours
If your project involves a party wall—a wall you share with your neighbour—you could be liable for any damage you cause. The Party Wall Act outlines your legal responsibilities, and it’s crucial to have adequate liability coverage to meet them.
Why Trust Acer Insurance to protect your biggest asset?
Navigating the world of renovation insurance can feel overwhelming, but you don’t have to do it alone. At Acer Insurance, we understand the complexities and risks involved in renovating your home. Our team of brokers specialises in works insurance and can provide the guidance and peace of mind you need.
We’ll work with you to find a tailored policy that covers everything from your existing structure to your new works, ensuring there are no dangerous gaps in your protection. Whether your project is big or small, has already started, or is still in the planning phase, we’re here to help you get the right cover.
Don’t risk your biggest asset. Contact Acer Insurance today for a free, no-obligation consultation, and let us help you build your dream home with confidence.
