Team Build Construction

Renovation Insurance: Is It Necessary?

House being renovated
House being renovated

Given the home is one of the most important purchases people make during their lifetimes, it stands to reason that they will want it looking its best, both internally and externally.

For many households, a time will come when updates will be needed to ensure that their home remains a great place to live in.

The renovation of a property can also be important when people want to sell up and move on to pastures new. As well as ensuring homeowners get the most value from their home, it also ensures the sales process is more streamlined.  

However, the renovation process can have consequences, and these can be costly if a project is approached in the wrong way or carried out by inexperienced workers.

As such, those wanting to make changes to their home on their own should always ensure that the relevant coverage is in place if the worst-case scenario occurs.

The often preferred alternative option is to entrust the whole renovation process to a reliable construction company or building firm, who should have their own insurance coverage to protect the property whilst working is being undertaken.

What is renovation insurance?

Renovation insurance ensures you are covered should anything go wrong when work is carried out on your property. Although commonly referred to as renovation insurance, other terms frequently used include building work insurance, self build insurance and house refurbishment insurance.

As the name implies, renovation insurance is coverage tailored to those wanting to carry out renovation or refurbishment work on their property. Although the policy may offer the same coverage as conventional home insurance, it will have more coverage regarding renovation.

What does renovation insurance cover?

Workers renovating a house

When considering renovation insurance, it is important to remember that each policy can differ depending on the provider.

However, those wanting to renovate their home often find that renovation insurance covers the following:

The existing structure

This ensures the property is protected against any damage or loss when work is carried out.

The items in the property

Should there be any items damaged due to work being carried out, the renovation insurance will cover them to be repaired or replaced.

Providing alternative accommodation  

In cases where the home is uninhabitable due to damage, restoration insurance will provide alternative accommodation.

Building materials and equipment

Restoration instance will cover any materials and equipment that are on-site but not yet fitted, including units and pipes.

Will my existing home insurance policy cover a renovation?

Oftentimes, the reason some home renovations can end up becoming extra costly if something goes wrong is due to the wrong type of insurance being in place. In short, if the house insurance does not cover the damage caused during the renovation, the homeowner will need to pay to rectify their issue out of their own pocket.

This can be frustrating, especially when working on a tight budget. Fortunately, the problem can be easily sidestepped by ascertaining what insurance is currently in place before starting the project, and making plans for additional insurance should it be required.

Sometimes, people may assume their existing home insurance policy covers structure and content damage, but this is not always the case. Although some elements of the renovation may be covered, there could be some that are not.

Those wanting to carry out work on their property should never assume their existing insurance policy will cover the work. Even if you are confident it does, it can be worthwhile speaking to the insurance provider to ensure that is definitely the case.

What to do if the renovation is not covered by an existing insurance policy?

Finding out that your current policy does not cover your planned renovation can be disappointing, but at least this means you know all of the facts before proceeding with the project.

Sometimes, the world of insurance can be confusing and overwhelming, but when it comes to renovating, it is important to ensure that the right insurance is in place from the first instance.

Coverages like home insurance and contractor insurance all help reduce the potential cost of damage or loss. However, taking some time to consider your options before moving ahead with a project ensures your coverage is in alignment with your project, and there are no nasty surprises should anything occur during the renovation.