Insurance

The importance of home renovation insurance

Did you manage to get to the Ideal Home exhibition this year – it was held from the 22nd of March to the 7th of April? If so, you were following in the tradition of millions of proud homeowners over more than a century that it has been running (devised by the Daily Mail newspaper, the first of its kind was held way back in 1908).

The emphasis at the show has always been on making the most of what you already have, rather than looking for your dream home elsewhere – and this year proved no exception. “Don’t move, improve”, as Homes and Property magazine put it in an article dated the 19th of December 2017.

Make sure to arrange home renovation insurance

What is often overlooked in all the excitement of planning and carrying out any home improvement or renovation, however, is the importance of home renovation insurance.

Here are some of the reasons why you might not want to overlook this insurance protection:

  • unless your proposed home improvements involve little more than a quick lick of paint, your current home insurance is unlikely to provide the cover you need once any building works start;
  • standard home building and contents insurance typically excludes cover for loss or damage to the existing structure once work on an extension, renovation or other structural alterations commence;
  • once extensive building works are underway, you may also need to move out of your home for a while, thus leaving it effectively unoccupied;
  • when it is empty, and there is no longer anyone living there on a daily basis, your current home insurance is likely to be restricted still further – because of the heightened risks to an unoccupied property;
  • such restrictions on the insurance cover of your home put you in danger of breaching the likely condition of your mortgage that the building remains appropriately and adequately protected by insurance at all times;
  • specialist renovation insurance is designed to plug these gaps and restore the full cover needed by your home whilst building works are in progress;
  • it is a standalone form of insurance which lasts just as long as the building works themselves and, unlike most other types of general insurance may be purchased for periods less than a whole year;
  • if the works are scheduled to last just three or six months, say, your renovation insurance may cover that period only – and when you revert to your regular home insurance at the end of the renovation project, the cover may need to be updated to reflect the increased value of your property;
  • in the meantime, renovation insurance is protecting against the risk of loss or damage to the existing structure of your home;
  • typically, it also maintains your public liability indemnity – defending you against claims that might be raised by any visitor to the building site, neighbours or passers-by who may be injured or have their own property damaged and who hold you liable;
  • renovation insurance may also extend to cover against the theft, loss or damage of building materials, supplies, tools and plant that is kept

As you may see, therefore, renovation insurance plays a critical role in maintaining the full range of safeguards for your home whilst building works are in progress.