With increasing numbers of homeowners opting to invest in their homes rather than moving to a new property, renovations and rebuilds are on the up. But what impact do these have on your buildings insurance? Read on to learn about the impact of renovations and rebuilds on your home insurance, and any actions you may need to take.
Do I need to let my insurance company know that I’m renovating or rebuilding?
The short answer is yes, although there will always be exceptions. Other than minor works (such as cosmetic improvements; including redecorating, bathroom refits, kitchen refits), generally you will have to inform your insurance company of your plans, particularly if you are altering the layout of your home or undertaking major structural work; for example, rewiring or replacing the roof.
What do I need to tell them?
You will need to give your insurer an idea of how long the works are going to take, if you will remain in the property during the work, who your builder is, and details of their public liability insurance. If you are carrying out the work yourself, you may not be covered unless you take out a specialist insurance policy.
Do I need specialist insurance?
For major structural renovations, you can purchase a specialist renovation insurance, which may include cover for any structural damage caused; damage to any possessions within your home; alternative accommodation should you be unable to live in your home due to uninhabitable conditions; theft; public liability; personal accident cover; legal expenses; accidental damage; and unoccupied property insurance (if you are away from the property for more than 30 days).
What if I am rebuilding?
Rebuilding your home will require specialist insurance. It’s best to speak to an expert to make sure you are taking out the right level of insurance for your project. Following the renovation or rebuild, you will need to recalculate the cost of your home (rebuild cost, not market value), to make sure your insurance policy covers you in the event of a claim. You can get help calculating the rebuild cost of your home on the Association of British Insurers website.
