Renovation Insurance (Site Plan, Contract Works….)

Renovation insurance, also known as renovation and extension insurance or home improvement insurance, is a specialised type of insurance coverage designed to protect homeowners and contractors during the renovation or remodeling of a property. Renovations often involve changes to the structure, materials, and overall value of the home, which can introduce additional risks that may not be covered by standard home insurance policies. Here are key aspects of renovation insurance:

  1. Scope of Coverage:
    • Property Damage: Covers damage to the existing structure or property during the renovation process, including accidents, fires, or other unexpected events.
    • Liability Coverage: Protects against legal and financial consequences if someone is injured on the construction site or if there is damage to a neighbor’s property.
    • Burglary and Vandalism: Offers protection against burglary or vandalism that may occur during the renovation period.
  2. Contractor’s Liability:
    • Renovation insurance can extend coverage to contractors and subcontractors working on the project, ensuring they have liability protection for their work.
  3. Renovation Value:
    • The coverage is often based on the increase in the value of the property resulting from the renovation. It’s important to accurately assess the renovation value to ensure adequate coverage.
  4. Project Duration:
    • The policy typically covers the duration of the renovation project. It’s essential to update the insurance provider if there are any project extensions.
  5. Notification Requirements:
    • Homeowners may be required to inform their insurance provider about the renovation project before it starts to ensure that coverage is in place.
    • Homeowners may also be required to inform the insurer if they are living on site while the project takes place.
  6. Types of Renovations Covered:
    • Renovation insurance can cover a wide range of projects, including kitchen and bathroom remodels, home extensions, structural changes, and other significant renovations.
  7. Deductibles and Premiums:
    • Policies may have deductibles, and premiums can vary based on factors such as the scope of the renovation, the level of coverage needed, and the insurance provider.
  8. Builder’s Risk Insurance:
    • In some cases, renovation insurance (Contract works) is synonymous with Builder’s Risk Insurance, which specifically covers property during construction, renovation, or repair.
  9. Vacancy Considerations:
    • If the home will be vacant or occupied during the renovation, homeowners may need to consider their coverage for their properties, as standard home insurance has limitations while certain work is carried out.
  10. Working with Professionals:
    • Engaging with insurance professionals who specialise in renovation insurance can help homeowners navigate the complexities of coverage and ensure adequate protection.

Before embarking on a renovation project, homeowners should carefully review their existing insurance coverage and consider obtaining specialised renovation insurance to address the unique risks associated with construction and remodeling activities. Consulting with insurance professionals can help tailor coverage to the specific needs of the renovation project.