With much more time spent at home in the last year due to the pandemic, many homeowners across the UK have spent their time in lockdown making home and garden renovations. In this blog, we speak to one of our founding partners George Seatter, about your insurance needs when looking to renovate.
LAUREN: When looking to make home renovations, what does my insurer need to know about, and when?
GEORGE: It’s always a good idea to discuss any planned works with your insurer before works commence, but particularly if:
⁃ the works planned are above £50,000 in value
⁃ you intend to move out of the property whilst the works are ongoing
LAUREN: What can my insurer provide cover for and how much is the cost?
GEORGE: It depends on who you are insured with. Most mainstream companies won’t be able to cover works over £50,000 whereas many high net worth insurers will automatically cover works up to £100,000 and some as high as £200,000.
LAUREN: Do I need to have insurance cover if my builder already has insurance?
GEORGE: Sorry, I’m going to say it depends again! The insurance cover you’ll need relates to the contract you sign with your builder. This will stipulate who has the responsibility to insure the building and who has to insure the planned works.
LAUREN: What happens if things go wrong?
GEORGE: It’s never good when things go wrong. Failing to notify your insurers that you are having building work done, will mean that you won’t be insured for any damage caused during the works. It’s also very important to seek specialist advice (from a broker) and ensure that the insurance policy fits with the terms of the contract signed with the builders. Again - failure to do this potentially means no cover would apply in the event of a claim.
With this information in mind, it is important to ascertain exactly what cover your insurance can provide when looking to make renovations, and to be proactive in making sure you have the appropriate level of cover. Even if you think your builder’s insurance will cover the works for example, often their insurance doesn’t cover your building and any potential damage to it. It’s clear to see the advantage of having a specialist broker in this situation, as they will be able to give specific advice and cover which is catered to your individual insurance needs. All in all, it’s best to err on the side of caution and double check, or it’ll cause a much bigger headache in the long run!
