Renovating a home is equal parts exciting and scary. You have the opportunity to add value and beauty to your property, but there's a lot that can go wrong. What's more, many homeowners do not realise that once renovation work begins, their existing home insurance may no longer provide adequate protection.
Before you rip up your floors, knock through your walls, or even pick up a hammer, having the right insurance for renovating a house is essential. This article explains why standard cover may fall short, what typically needs to be insured during a renovation, and how homeowners can avoid costly gaps in protection.
Most standard home insurance policies are designed for occupied properties that are in a stable condition. Once renovation work begins, the risk profile of the property changes significantly.
Structural alterations, exposed materials, increased fire risk, and the presence of builders can all invalidate or restrict cover under a typical policy. In some cases, insurers may even exclude all damage related to the works from your cover if they are not informed in advance, potentially leaving you responsible for the full cost of repairs or reinstatement.
This is why insurance for a house under renovation should be reviewed as soon as the project is planned, long before the work has started.
Even during renovation, the existing structure of the property still needs to be insured. This includes the walls, roof, floors, and any parts of the building that won't be altered.
Insurers may reassess the condition and stability of the property once works are underway. For instance, if load-bearing walls are removed or major structural changes are planned, this may increase the risk of collapse or accidental damage, altering the property's risk profile.
Ensuring the main structure remains covered is a core part of insurance for renovating a house, particularly during large or long-term projects.
One of the most commonly overlooked areas of cover is the actual building work itself. Standard home insurance rarely covers the value of ongoing works, including labour and partially completed structures.
If damage occurs mid-project, from fire or storm damage to theft of installed materials, the cost of reinstating the work may not be covered without specialist renovation insurance in place.
For major projects, the contract value of the works should be declared and insured separately as part of your house insurance during renovation.
Building materials stored at the property are another key consideration. Bricks, timber, fixtures, fittings, and specialist materials can represent a significant financial investment even before they are installed.
Theft and vandalism risks are often higher during renovations, particularly if the property is partially unoccupied or unsecured. Many standard policies limit or exclude cover for materials on site once building work begins.
Ensuring materials are included within insurance for houses under renovation protects the project against losses that could delay or derail it.
Renovation work introduces additional liability risks. Builders and other contractors, visitors, and even neighbours could be injured as a result of the works, or nearby properties could be damaged.
While builders should carry their own insurance, homeowners can still be held liable in certain circumstances, particularly if work is poorly managed or if contractors are uninsured.
Appropriate liability cover is an important part of insurance for renovating a house, helping protect homeowners from legal and financial claims.
Many renovation projects involve periods where the property is partially or completely unoccupied. This can trigger restrictions under standard home insurance policies, which often limit cover if a property is empty beyond a set number of days.
Unoccupied properties are at greater risk of theft, vandalism, fire, and undetected damage. Renovation insurance can be structured to reflect these increased risks, ensuring continuity of cover throughout the project.
Non-disclosure of renovation plans can invalidate a policy entirely. Even relatively minor works can affect cover, so it is always better to have an early conversation and clarify what is and is not insured. In many cases, insurers will recommend alternative or specialist cover rather than adjusting a standard policy, helping to avoid gaps in protection later in the project.
For extensive renovations, standard insurers may be unwilling to continue cover at all. In these cases, specialist renovation or self-build insurance may be required.
These policies are designed to cover the existing structure, works in progress, materials, and liability risks in a single package. They can be tailored to the scale, duration, and complexity of the project.
Specialist insurance for houses under renovation provides continuity where standard policies fall short.
A specialist broker can assess the scope of your project, identify risks, and recommend suitable cover that aligns with your plans. They ensure disclosures are accurate, sums insured are realistic, and there are no gaps between different stages of the work. This expertise is particularly valuable for homeowners undertaking complex or phased renovations.
If you are renovating your home and want to make sure everything is properly insured from day one, request a callback to speak to one of our specialists to make sure your renovation is properly protected from the outset.