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The importance of renovation insurance

The pandemic has changed our priorities regarding what we want from our homes – whether we live there or are a landlord looking to attract the ‘right’ tenants. A recent report of 2020 home improvement trends cited an increase in space, the need for a home office and outdoor space. 

And with all the uncertainties of moving house during the current overheated market activity and gazumping making a comeback – plus the legal and other costs of buying, selling, and arranging removals – you might instead consider renovating your current home.

During many periods when homeowners and tenants were forced to work from home, many property owners realised the potential for renovation work. Indeed, a story in the financial pages of the Daily Mail at the beginning of the year revealed that nearly eight out of every ten property owners believed their dwelling would benefit from some degree of improvement.

A renovation project, however, can prove a significant undertaking requiring careful consideration of a wide range of issues – as our Guide to Renovating helps to explain. This brief blog looks at the need for renovation insurance.

Why do I need renovation insurance?

For property owners – especially those considering major building works to improve the dwelling – specialist renovation insurance is an important consideration.

Unless your home improvements are limited to little more than a new coat of paint, your present home insurance – or landlord insurance if the property is let – is unlikely to maintain the cover you need:

  • typically, for example, the building insurance incorporated in your home insurance or landlord insurance policy specifically excludes loss or damage to the existing structure and fabric of the building while alteration, extension, or renovation works are in progress; and
  • when significant renovation work is involved, it is likely that you and your family – or any tenants in let accommodation – will need to move out until the project is completed, so leaving the property temporarily vacant and unoccupied.

In a nutshell, if you don’t tell your insurance provider that your home is undergoing renovation, your existing home insurance or let property insurance could become void – leaving your property with no protection at all. This still applies even if you are living in the property while the builders are working there.

This is where renovation insurance for properties undergoing works steps in.

What does renovation insurance cover?

Standalone renovation insurance may come in a wide variety of guises, offering different levels of protection to suit your own unique needs and your budget.

The most basic cover may typically provide cover against fire, lightning, explosion, earthquake or aircraft, plus (in some cases) subsidence cover and public liability insurance. The more comprehensive cover may offer theft, malicious damage and full cover.

Adaptability and flexibility

As you may see, renovation insurance, therefore, may restore complete protection for your home, let accommodation, or commercial property while building works are in progress and even when the premises are empty and unoccupied.

Unlike most other types of general insurance, renovation insurance is sufficiently flexible to allow you to arrange cover for less than a full 12 months. If renovation work is scheduled to last just six months, let’s say, you may arrange the renovation insurance you need for that period only.

Of course, policy terms, conditions and benefits may vary depending on your insurer, plus claim limits may typically apply.

Next steps

If you are looking to renovate, do not hesitate to contact us today to discuss your renovation insurance options – we will be pleased to help.

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