Many UK homeowners choose to extend or renovate their homes. Taking the decision to renovate rather than move home to improve your living space has become increasingly popular. Here, Smith Greenfield’s Premier Client Adviser, Imran Moideen, considers the insurance implications of home renovation projects.
It can be an exciting time for a homeowner, especially in the early, creative stages of a project, when you are looking at what’s possible for your home and garden. When it comes to budgets and the realities of project management, however, things can become more complicated. Not everything can be simply handed over to a project manager or architect. Looking at household and buildings insurance is something that can be overlooked.
Whilst most High Net Worth policies accommodate general redecoration and maintenance work that keep your home in a good state of repair, they may not cover all building works. Depending on the type of policy, they will usually cover minor works up to £100,000. However, if the building works are more substantial and involve a JCT Building Contract or similar, then make sure you ask your insurance adviser to check your policy details.
If you are carrying out major repairs, renovations, building works or extensions, most household insurance policies, standard and high value, will have specific limits and instructions relating to building works. These will detail what you need to tell your insurance company before commencing any works and MUST be checked to ensure you are not in breach of your policy terms.
It is important to understand that if your building works involves a JCT Building Contract or similar, the majority of home insurance providers cannot usually accommodate the joint insurance clauses often suggested by architects, who require you to insure your home in joint names.
As property is often our most valuable asset, you cannot be too careful. We have all read about basement excavation horror stories and bankrupt builders! It is extremely important to make sure you are fully insured so that, should something unforeseen happen, you have peace of mind. While not every project needs specialist cover, your insurance broker will be able to provide you with advice, helping you to be sure you have the correct insurance in place.
Smith Greenfield’s checklist for clients wishing to carry out major repairs, renovations and extensions
- Discuss building contracts and insurance clauses with your architect or project manager, making sure the period of work is carefully formulated to accommodate contingencies in case of delays and increased costs. Delays can result from disruption to the delivery of materials, the availability of personnel and from the weather, leading to increased premium if the policy needs adjustment mid-way.
- Inform your broker of the insurance requirements demanded by the building contract and architect in advance of works commencing. This enables the best advice and solution to be provided.
- Make sure your contract has adequate insurance for the works taking place, such as Contractors All Risk cover, Public Liability and Employers’ Liability Insurance.
- Consider taking out a specialist policy if the value of the contract exceeds the limits in your policy or you are using a contract with joint insurance requirements. A specialist policy will ensure you are adequately protected in the event of a claim rather than just relying on the contractor’s Public Liability insurance to compensate you. This way you ensure that your home is adequately covered in the event of a covered loss regardless of negligence on the contractor’s part.
Smith Greenfield is an independent insurance broker specialising in insurance for high value homes and collectors of valuable objects including: art insurance, antiques insurance, memorabilia insurance, vintage car insurance, fine wine insurance and more. To discuss specialist insurance for your home or collection, please contact our Premier Client Adviser, Imran Moideen, via email imran.moideen@smithgreenfield.co.uk or telephone 020 8603 3730.