Renovations can enhance your comfort and boost the value of your home. They also give you a chance to make the house eco-friendly. While renovations can prove beneficial, they come with some risks. In this article, we will see how renovation insurance can help to protect you from potential and sometimes significant financial loss.
Is renovation insurance necessary?
Renovation insurance can be of huge value to the property owner. It offers protection for individuals and businesses carrying out renovations on their properties. Renovations are often expensive, and any unexpected events can significantly raise the cost of the project. With a renovation insurance policy, you can enjoy some peace of mind, knowing that you are protected against damage to structures being built, and that you have cover against injury for those carrying out the renovations.
If you are planning on taking out a mortgage, the lender may require you to have renovation insurance in place. This helps to protect the lender in case of unexpected events.
Renovation insurance consists of several covers. The first one is public liability insurance, and this protects the builder from claims made by third parties for human injury. For example, if a member of the public gets injured by falling debris, they will be compensated under this insurance plan. Any property damage that is caused by the construction work will also be covered under public liability insurance.
The other cover you should consider taking up is alternative accommodation insurance. This will include any costs involved in finding temporary accommodation should it be required. Renovation insurance also includes unoccupied property insurance. This will pay for any damages resulting from vandalism, fire, or theft.
The other item that is commonly included in renovation insurance is building materials and equipment cover. This will protect the tools used on the construction site. Given the high cost of construction equipment, this cover can prove to be very valuable.
Is renovation insurance expensive?
Renovation insurance can cost from a few hundred pounds to a few thousand pounds. The cost will depend on a number of factors. One of these factors is the value of the property. If it has a very high value, the premiums will also be very high. If the property is located in a high-risk area, you will also need to pay higher premiums. Examples of high-risk areas are places that regularly experience natural disasters, such as flood risk areas. The level of coverage will also determine the cost of the policy.
Can you insure against building work?
You can purchase insurance against building work. Some examples of events covered include:
- Collapsed walls
- Fires and vandalism
- Theft
- Damage or loss of construction tools
It is essential to check the terms of the policy to determine what can be covered in the plan and to make sure that you have the right level of coverage to adequately protect you and your business.
Do I need additional insurance when building an extension?
When building an extension, you will increase the number of risks your home is exposed to. This makes it more likely that you may need to make a claim. For this reason, home insurance plans typically don’t provide cover during the building work. It is necessary to take out additional insurance to protect you from unplanned eventualities throughout the project.