Are you planning a significant renovation or extension to your property? Are you confident that your standard home insurance policy will provide cover if anything goes wrong? Should you consider a specialist renovation insurance policy while improving your home?
In this article we consider the importance of specialist renovation insurance versus standard home insurance.
There are only a handful of insurance providers, such as Magnet Insurance, who understand this sector and offer specialist, tailored insurance protection for complete peace of mind during renovations.
A renovation project is an expensive proposition and a significant investment, so it’s vital to ensure you are fully protected by comprehensive insurance should something go wrong.
The risk of loss or damage to your home or damage to neighbouring property or injury to third parties, increases during renovations, particularly if the home is unoccupied during the building work or the work involves structural alterations, such as extensions, loft conversions or basement dig-outs.
In addition, many building contracts specify the type of insurance required and whose responsibility it is to have the required insurance in place. These contract terms need to be strictly adhered to, in order to avoid any breach of contract and to effectively protect your investment.
Whilst it’s essential to hire construction companies that are fully insured, it’s in your best interest to look for separate specialist cover to make sure you are protected against all eventualities. For example, what would happen if your contractor failed to have the correct insurance cover, or allowed their policy to expire, or if they breach a condition of their policy or if your contractor went bust.
Relying entirely on your contractors’ insurance, is an uncomfortable position to be in.
For complete ‘peace of mind’, it’s natural that home owners should take control of insurance arrangements, typically with a specialist Renovation or Project Insurance policy.
Traditional Home Insurance
Although standard home insurance is designed to cover your property, there are always terms, conditions and limits which may mean you are not covered during renovations. You must carefully check the terms and conditions of your existing policy and inform your home insurer of all the details of the renovation.
If the work and/or current structure is not covered adequately, you may find that you need the support of specialist renovation insurance. This ensures that any damage or legal liability that occurs to your existing home during the project are covered and your home improvements are protected from risks that are beyond your control.
Building Works Insurance
If you are looking for renovation insurance, then you should search for information about building works insurance policies, project insurance or renovation insurance. This is a broad category and covers self-builds, eco homes, innovative building techniques, basement dig-outs, etc.
Shopping Around
Mainstream house insurance providers may be willing to give you a quote but as often as not the premiums will be high and your level of cover will be reduced. Don’t feel you have to pay through the nose or settle for less cover. Take time to ask questions and shop around till you get the best deal. Bear in mind that comparison sites will not generally provide specialist Renovation Insurance.
Renovation Insurance Through Magnet Insurance
If you are planning a renovation project, come and chat with our team at Magnet Insurance. We are an independent specialist insurance broker who can tailor a policy to fit in with your precise needs.
For more information, download our free Renovation Insurance Guide, which includes useful sections on Joint Contract Tribunals, risk management, hiring contractors and more. Click here to download your copy.
