Do you want to give up control of the risks affecting your renovation project?
Do you know how you could be affected by your builder’s non-disclosure of seemingly immaterial facts?
Do you know what’s not covered under Contractors all Risks Insurance?
Do you know how to avoid getting sued, plus legal defence costs for mistakes made by the builder?
Do you know if you need party wall insurance?
Do you know what Insurance you need for the period before the renovation project has started?
Do you know if you require Project Liability Insurance for your project?
Do you know the difference between a Bona-fide Subcontractor and a Labour only Subcontractor?
Do you understand why the risks to you increase towards the end of a project?
Do you know why you need special insurance for direct purchases like kitchen units or fitted wardrobes?
Do you know what insurance you need to comply with the contract you have with your builder?
Do you know how to calculate an accurate rebuild cost for the building in its current state?
Do you know how to avoid finger-pointing by multiple insurers and loss adjusters in the event of a claim?
Do you know if you need Insurance for land you have purchased?
Do you know why you must not rely on the builder’s insurance?
If your answer to any of these questions is “No” then please call us for a chat
about Renovation Insurance.
Carrying out any level of building works is fraught with risk for a home owner or property owner. Before the building starts the motives of you and your builder are nicely aligned, but as problems emerge or if catastrophe strikes, your motives will be very different.
There are 2 ways to insure a renovation project:
Renovator Buys Renovation Insurance Covering Both Buildings & Works
Under this option, the renovator (home owner or property owner) takes responsibility for both Buildings and Contract Works insurance, purchasing a bespoke product specifically designed to cover renovations.
1. As renovator you retain full control of the insurances.
2. You enjoy ‘all risks’ cover for the building and the works.
3. There is only one insurer, so you avoid frustrating and costly arguments between insurers as to who is responsible for a loss. The claim process is much more streamlined
4. Contractual implications – if you use a JCT contract (or similar) with the main contractor, there is frequently a ‘joint names’ requirement (where the contractor is noted as a joint insured).
5. Cover for direct purchases which are not part of the main contract even before delivery- if you have paid the supplier.
6. Liability cover shields you from potential legal claims and financial liabilities arising from accidents, injuries, or property damage that may occur during the renovation project.
7. Option to add Non-negligent liability insurance (a.k.a party wall insurance).
8. Option to add cover for Contents left at the house.
Insurance Split Between Renovator and Contractor
1. Under this option, the renovator insures the building and the contractor insures the contract works (materials, fittings, works in progress etc.). This is a cheap option but comes at the expense of cover, control and a stress-free claims process.
2. The existing insurer will restrict cover to FLEEA(Fire, Lightning, Earthquake, Explosion, Aircraft impact). Events such as Escape of Water and Storm damage will be excluded.
3. There will be no direct cover if the building is damaged by the contractor. The renovator will have to prove negligence and pursue the contractor
4. The renovator has no control over the contractor’s insurers, nor can the renovator’s broker exert any influence over a claim involving the contractor’s insurers.
5. If the contractor’s insurers don’t meet the claim and the contractor is faced with a serious financial claim they could easily go into liquidation and set up under a new name leaving the renovator with a huge bill for uninsured damage.
6. Your contractor may have a great reputation but unless you have done detailed due diligence and researched their financial health, you won’t know how likely they are to be able to withstand a financial shock. If you allow the contractor to insure the works, and he goes bust, then you are likely to be left with no cover at all for your capital investment.
7. There may be problems with this option dovetailing with the insurance requirements.
8. Items purchased directly by the renovator such as kitchen units, appliances and bathroom sanitary ware will not be insured against pre-installation theft from site. This is not uncommon since many people (shop workers, delivery drivers, members of the public) know when big deliveries are made and that the property is unoccupied making theft very attractive.
9. You have relied on standard liability insurance in a situation which is not standard, leaving yourself exposed to a number of events which are low in likelihood but very high in impact.
Renovation Insurance solves the problems created by relying on the Builder’s insurance and the restricted cover offered by the Buildings Insurer. Renovation Insurance let’s you as property owner retain full control in the event that catastrophe strikes.
Our expertise and business relationships make us your best partner for your insurance requirements.
You can rely on us to arrange your insurances, leaving you to focus on what matters to you.
We use our Loss Assessing experience to advise you on the most suitable policy, and to help you understand and navigate the insurance claims process.
Our tailor-made advice safeguards you against the worst that could happen.
We have since switched our insurance to Samson Insurance Services.
Thank you!
You can contact our expert brokers for a personalised insurance quote using the details below or alternatively fill in the form and arrange a time for us to call you.