A Guide To Home Renovation Insurance
Before any project goes ahead, it’s imperative to make sure your contractor and your project have the right insurance in place. The build phase is where the majority of your budget will be spent, so managing risk proactively is crucial for the safety of your project.
If you consider Beams, we use the top 1% of contractors in London for our projects. We ensure they’re all fully insured to a minimum of £6 million, and we provide you with a year’s Contractor Warranty, so you can rest easy knowing that nothing will fall apart after the work.
However if you do decide to go it alone, we’ve put together this guide to different types of insurance required as you carry out work.
Home renovation insurance
Home renovation insurance covers a number of situations that could arise during your renovation. This includes damage to the contents of the building, damage to neighbours’ properties and the theft of equipment and tools.
Unfortunately it’s not enough to just have home contents insurance in place when undergoing a home renovation. We’d advise you to use comparison sites to find the best offers and spend some time researching what you need. You can also notify your home contents insurance provider as they’ll often have a policy you could use.
Public liability insurance
Public liability insurance offers legal protection if a person not involved in the renovation (who is neither a customer or contractor) is injured or if someone else’s property is damaged. This insurance is essential if your contractors work near other people and their property, which includes almost all construction projects, particularly in London.
Contractors should renew this insurance every 12 months, so make sure it’s up to date when reviewing your contract. At Beams we ensure all our contractors have public liability insurance as part of their enrolment with us.
Employer liability insurance
Legally contractors must be covered by employer liability insurance, which is necessary if an employee becomes injured or ill due to their work. If you’re building your own house, consider taking this out yourself. In the event a volunteer or sub-contractor becomes injured on-site, you could be viewed as their employer and face a lawsuit claim.
Contractors all risk insurance
Contractors all risk insurance is a comprehensive coverage designed to protect against property damage and third-party claims for injuries or damages that occur on the construction site, ensuring both the contractor and the homeowner are protected from unexpected incidents.
This insurance typically includes protection for materials, tools, and equipment used during the renovation, as well as the existing structure being worked on. By safeguarding against unforeseen events like theft, vandalism, or accidental damage. Contractors all risk insurance provides peace of mind and financial security.
Professional indemnity insurance
Professional indemnity insurance protects against claims for loss or damages arising from professional negligence or negligent advice. It’s not essential but worth inquiring about, especially if your contractor is making alterations to the design of your project. It also helps uphold a level of professionalism beyond just the labour side of your project.
Structural warranty
Professional indemnity insurance protects architects, designers, and consultants in home renovation projects from claims of negligence or substandard work. It covers legal costs and compensation if their advice or designs cause financial loss or damage. This insurance offers peace of mind by ensuring that any errors or omissions do not financially burden the homeowner.
Product liability insurance
Product liability insurance safeguards against claims arising from defective or unsafe products used in home renovation projects. It covers legal costs and damages if these products cause injury or property damage. This insurance provides protection to contractors and manufacturers, ensuring they are not financially liable for defects beyond their control.
Home insurance guarantee and deposit protection
Home insurance guarantees protect homeowners by ensuring that their renovation investment is covered against contractor failure or incomplete work. Deposit protection safeguards any upfront payments made to contractors, reimbursing homeowners if the contractor goes bankrupt or fails to deliver. Together, these protections offer financial security and peace of mind, minimising the risk of financial loss during renovation projects.
Life insurance
Life insurance provides financial support to beneficiaries in the event of the policyholder’s death, ensuring their loved ones are covered for living expenses, debts, and future needs. It offers peace of mind by guaranteeing that family members receive a lump sum or regular payments to maintain financial stability. This insurance is crucial for protecting dependents and securing their financial future against the uncertainty of life's risks.
Important considerations
1. What is the total value of your renovation?
If your project costs over £25k, it’s advisable to get home renovation insurance. This can allow your project to resume as soon as possible in case of any issues.
2. What insurance should your contractors have?
Contractors must have at least £2m Public Liability cover. They may also have ‘contractors all risks cover,’ a more comprehensive policy. Always ask to see an in-date copy of these insurances before work starts.
3. Previous insurance claims
Inform your provider if you’ve previously made a claim on your home insurance. This allows them to calculate the correct coverage considering all factors.
4. Potential project delays
Consider any factors that could cause delays. If delays occur, inform your provider and extend your home renovation insurance to stay covered until the project is finalised.
5. Common risks and prevention
Theft: Install an alarm and security system to mitigate the risk.
Contents: Protect valuable contents by covering them or storing them securely.
Escape of Water: Regular checks and knowledge of your water shut-off valve can minimise impacts.
Fall from Height: Ensure work is planned, supervised, and carried out by competent people. Conduct background checks and get expert advice before proceeding.
Beams ensures all our contractors are insured up to £6 million
At Beams we use the top 1% of contractors in London, and after a 6 stage onboarding and vetting process we ensure they’re insured up to £6million.
If you’d like us to guide you from design to the completion of the work by our vetted contractors, then get your free estimate today:
