Running out of space at home? Want to upgrade your property without the hassle of moving? In many cases, renovating your existing property provides the perfect solution, allowing you to increase the value of your home without changing the location. Yet managing a renovation project is not without its stresses. Things can, and frequently do, go wrong, which is why it’s a good idea to ensure you have adequate insurance coverage – before you begin any home improvements.
WILL MY EXISTING HOME INSURANCE COVER RENOVATIONS?
Most property insurance policies state that you should inform your insurers before you begin a renovation project. They also consider a property unoccupied if it hasn’t been used overnight for more than 30 days. That means if the work you intend to carry out requires you to vacate the property, you will almost certainly need a separate insurance policy.
This is because, if you plan to carry out substantial work, altering the structure of your home could impact your cover. Not only that, but building an extension or loft conversion will involve having builders, construction materials and equipment on site. It might even mean leaving some parts of your property open to the elements while work is ongoing, which increases the risk of both theft and weather damage.
So, although your insurer doesn’t need to know about cosmetic changes such as painting interior walls or tiling your kitchen, if you’re planning on making major changes that require you to move out for the duration of the project, you will need unoccupied home insurance.
WHAT RISKS DOES UNOCCUPIED PROPERTY INSURANCE COVER?
Generally speaking, home insurance policies work by calculating the level of risk to your property. Unfortunately, unoccupied buildings are at higher risk than occupied homes as they are more susceptible to leaks, break-ins and vandalism.
During your build project, for example, you may not be able to use locks on doors and windows. In fact, if your renovation involves significant changes, you may not even have doors or windows for a period of time! This not only makes your property more vulnerable to thieves, but advertises the fact that it is vacant, meaning any building materials and equipment left inside are at increased risk.
Once you remove the walls or take down the roof, your property is also open to the elements. You will be exposing your home to weather conditions that could include wind, rain, storms and flooding, all of which cause more damage without the regular protections in place. Unoccupied house insurance helps protect you against these outcomes by reimbursing you for any damage, as well as covering the cost of potential vandalism or fire damage.
WHAT QUESTIONS SHOULD I ASK MY INSURER?
When conducting building work, it’s important to check with your insurer exactly what is covered by your empty property insurance policy. It’s a good idea to establish whether it will protect the physical works in progress in addition to the existing fabric of the building. For example, if you are part way through an extension when damage occurs, will your policy cover the materials and labour already used?
Irrespective of any damage, even the most thorough build schedule can slip, but what happens when things don’t go to plan? Inform your insurer about the length of your renovation project but be sure to ask about coverage for potential delays or extended periods of vacancy since unexpected changes can invalidate your policy.
Finally, you may also want to ensure that your unoccupied home insurance covers your liability for injuries to contractors or visitors. If a member of the public is injured as a result of falling materials or mishandled machinery, for example, you could be held responsible as the property owner.
Naturally, your builder or contractor should have their own liability insurance (and it’s important that you check they do), but it’s wise to bear in mind that you could still face claims. In short, if you want to have control over your insurance cover during a renovation project, don’t rely on your builder’s policy – organise your own.
DO I NEED CUSTOMISED COVER?
Support to handle claims, cover legal fees, and pay compensation cannot be arranged retrospectively, so it’s a good idea to discuss the cover you require in detail, and in advance.
Speaking to a specialist insurance provider such as OBF can help to put your mind at ease. We can offer expert guidance on selecting the right coverage, providing tailored unoccupied home insurance specifically for your renovation project.
