Renovation insurance, commonly known as contract works insurance, is designed to cover the specific risks associated with large home renovations and refurbishment projects. A standard home insurance policy usually protects the property in its existing building state. But renovation insurance also safeguards the property during the building work phase.
We typically recommend comprehensive cover for projects that go beyond routine property maintenance. These projects often require the right cover to protect the property owner and their investment. Projects which may require cover could include:
- Major structural renovations, including adding or removing load-bearing walls. These involve significant building work and require protection for contractors working on site.
- Large extensions and property conversions that increase the size of the property. In these cases, extension insurance is essential to cover the additional risks.
- Changing the use of a property, for example, converting outbuildings into a home or undertaking loft conversions. This often involves new building materials and equipment.
- Projects using high-value finishes and fixtures, such as imported marble, which increase the cost of the work and the value at risk for the property owner.
- Renovating a vacant property; self builds or unoccupied properties can be subject to additional risk and require comprehensive contract works cover.
Many renovation projects involve contractors working on site under a construction contract. It's important to have public liability cover to protect against injury claims or damage to neighbouring properties. Some property developers or existing customers may also require this cover.
Consulting with insurance experts like us can help you compare quotes and find answers about the best policy for your needs. We advise discussing your insurance requirements as early in your renovation and budgeting planning as possible. Leaving it too late can delay works and leave your project exposed to risks which are uninsured.
Renovation trends
In 2024 the home improvement market in the UK was valued at a staggering £11.2 billion. It is predicted that this will increase to £16.67 billion by 2033, suggesting it won’t be slowing down. It is also reported that nearly seven million homeowners intend to renovate their home in some by 2027.¹
Many property owners want their project finished earlier to reduce disruption. Efficient planning and the right team can help keep your renovation costs down and meet project deadlines.
Well-planned home renovations can also increase value significantly. To get the most from your project, consult experts for advice on boosting your property’s worth.
Renovation rules and regulations
Depending on the type of renovation you're planning, you may be subject to certain rules and regulations. This can include the Party Wall Act 1996, which applies to properties in England and Wales. If your project involves any works on or near a shared wall, such as a terraced property, you should seek advice from your contractor or architect.1
Before work begins, ensure your construction contract clearly outlines responsibilities. Many projects require contract works cover to protect both the property owner and the contractors. This insurance provides public liability insurance for injury or damage caused during the renovation.
Check your policy wording carefully to understand what your insurer covers or speak to our team if you are unsure. It's important to confirm that the existing structure is included in the cover. If you have contractors working on site, make sure they also have adequate insurance.
Some contractors may suggest a joint names contract works cover policy that protects both the employer and the contractor. However, having your own cover gives you reliable protection against any potential claims.
Will your home insurance provide cover for a renovation?
When planning a renovation, it’s easy to focus on design and forget about insurance. However not informing your broker or home insurance provider about major renovations or extensions can pose a great risk if something goes wrong during the work.
Many standard home insurance policies won't fully cover large renovation projects. You may need specific renovation plan insurance or extension insurance to protect your property and investment.
It’s important to check what your policy covers before work begins. Some policies exclude risks like roof repair, theft of building materials or equipment, and damage caused by building work. If your policy lacks comprehensive cover, you could face costly repairs or losses.
If damage occurs, you may need to make a claim. This could include costs for debris removal or temporary accommodation if your home becomes uninhabitable during renovations.
To find the right cover, it’s wise to work with a broker like Marsh Private Clients who can compare quotes from different insurers. Existing customers should also review their current policy to ensure it meets the needs of their renovation project. This helps avoid surprises and ensures you have reliable protection throughout your renovation.
After your renovation is complete, update your insurance. You may have increased your home’s size or value or added new contents. Informing your broker ensures you have the right cover for your updated property.
What does renovation insurance cover?
Renovations can cause additional risks to your house which, if they were to go wrong, could be expensive to repair. Large projects can be lengthy and stressful, but with contract works cover, you could be protected while the job is taking place.
Renovation insurance typically covers:
- Structural damage, including risks from fire or accidental damage during the works
- Loss or damage to your possessions
- Alternative accommodation – if damage caused during the works makes your property uninhabitable
- Cover for damage to works in progress until completion
- Liability covers to protect you if you need to pay for injury or damage caused during the renovation
If you plan to extend your property or carry out major works, this insurance can provide peace of mind throughout the process.
So before you consider a major renovation, be sure to check your home insurance covers you for the works. If it doesn’t or you are unsure, speak to us about renovation insurance or contract works cover as early as possible.
Not sure what cover you need?
If you're planning a renovation and you're unsure whether it's covered by your existing home insurance or if you need specialist cover, consult Marsh Private Clients for advice during the planning stage. Each renovation project is unique and comes with varying risks. However, knowing you have the right cover in place can be one less thing to think about during your project.
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