Home renovations can be a really exciting time, but it’s important to make sure you and your property are fully protected while you make changes to the structure of your home. Insurance, specifically building insurance, provides cover should anything unexpected happen to your property, however, if your property is undergoing renovation, are you fully protected? Before you begin any home renovation, be sure to discuss with your home insurer, especially if it is likely to change the size and value of your home.
In this article, we will remind you of exactly what home insurance is and what it covers, explore what type of insurance you may need for a renovation project and suggest how we can help you to find a policy that meets your requirements fully.
What is home insurance?
Home insurance, also known as buildings and contents insurance, is a type of property insurance that covers losses and damages to your home and belongings within it. It provides financial protection against various risks and potential disasters, such as burglary, flood and fire.
Home insurance, and having the correct policy in place can help protect you against paying huge costs if your property is damaged or if your belongings are stolen. It is the homeowners responsibility to take out the necessary home insurance policies, however, if you are renting or you own a leasehold property – it is typically the landlord who takes responsibility for purchasing buildings insurance. When renting, though, it is still your responsibility to take out contents insurance to protect your personal belongings.
What does home insurance include?
There are two different types of home insurance to protect your home and its belongings:
Buildings insurance:
One of the two sides of home insurance which covers you for damage to the structural elements of your home and its permanent fittings, such as the roof, walls, outbuildings and fitted kitchens and bathrooms.
Contents insurance:
The other side of home insurance which covers you for loss or damage to your belongings.
On top of the two main components of home insurance, you can also opt to add some optional extras to your policy, depending on your current situation and requirements:
Legal expenses cover:
This is an added extra to a home insurance policy, that covers any expenses resulting in taking legal action against another party. It can also protect you if legal action is taken against you.
Accidental damage cover:
This is a home insurance optional extra which could also cover you for DIY work and accidental damage.
These are the main components of standard home insurance policies. However, you might require non standard home insurance which typically covers;
- Unique house builds
- Flying freeholds
- Large houses (6+ bedrooms)
- Old houses (post 1500)
- Barn conversions & loft conversions
- Subsidence and underpinned properties
- Properties with flat roofs
What insurance do I need when renovating a house?
While some insurers will be happy to cover you during renovations, it is vital to ensure that your policy covers you during any structural changes you are planning on making. There is no one size fits all insurance option that covers house building or renovation, and the type of home insurance you will need will vary depending on the level of renovations that you are planning on undertaking.
If you’re planning on carrying out any projects in your home, make sure you know what you’re doing before you get started. When speaking with your insurer you are likely to be asked the following questions:
- What works are taking place?
- How long will the works take?
- What is your budget for the work?
- How will the property be occupied during works?
- Who is carrying out the work?
Your buildings insurer will not typically provide cover for certain damages caused by tradespeople working on your home, always check that anybody carrying out work on your property has adequate liability cover in place.
It is unlikely that you will be able to make a successful claim on your home insurance for damage caused during works unless you have informed the insurer beforehand.
Home insurance during renovations
Making improvements to your home will often add value, adding more bedrooms, bathrooms or simply expanding the living space will increase the rebuild value – which is how much it would cost to repair if required. In turn, this is likely to bump up the cost of your buildings insurance. It is essential to inform your home insurance provider about any increase in property value, otherwise you might be underinsured if you need to claim.
You can get specialist home renovation insurance for renovation work which is designed to cover your home while you’ve got builders and other tradespeople in. It also covers your home if it is left unoccupied for longer than usual periods due to building work. It can also pay out for alternative accommodation if circumstances force you to move out.
Specialist renovation insurance, however, does not cover faulty or poor work, which means it is important to choose your builder carefully. It’s best to use a reputable builder who is a member of an association such as the FMB and make sure they have insurance, specifically public liability insurance.
Renovating your home increases the risk of damage or loss so it is important to let your insurance company know about any renovation plans so that they can price your home insurance accordingly. There are also increased security and accidental damage risks during renovations, so it’s best to tell your insurer before the work begins and work with them to purchase the correct policy or optional add-ons for your specific circumstances.
How Nest GI can help
Nest GI is a trusted independent property insurance broker. We’re here to give you peace of mind, offering the highest quality general insurance advice for a straightforward and stress free experience. If you’ve just purchased a renovation project, or you’re thinking about updating your current home, get in touch with us today to find out more and discover how we can help you!
