Unoccupied property insurance for renovation: Do you need cover while doing works?

If you are planning to have works carried out on your property, you may have come across references to the need for renovation insurance. Often, this appears as a brief reminder to check that you have appropriate insurance in place before carrying out alterations, renovations or other building works.

However, you might need to dig a bit deeper to better understand the key features and need for specialist unoccupied property renovation cover.

When renovation makes standard home insurance invalid

Why this concern about house under renovation insurance? It takes on an importance simply because the building works may invalidate part – or even the whole of – your regular, existing home building and contents cover.

Let’s take a closer look at what factors might make your standard home invalid:

Structural work exclusions

your standard buildings insurance may incorporate an exclusion that limits or removes cover completely if you carry out significant building works or changes to the structure of the property;

from your insurer’s point of view, the rationale is simple – your standard home insurance or landlord insurance policy covers sudden, accidental damage to the existing structure of the building and not the risks related to construction in progress or major renovations;

the potential structural changes to which your standard home policy refers are likely to include loft conversions, extensions, the removal or alteration of load-bearing walls, and the underpinning of foundations;

when there is a change in circumstances of the insured item – renovation work to your home, in this case – an insurer may reconsider whether or not to provide cover;

depending on the scale of those changes, your insurer might impose different terms and conditions on your existing policy or remove cover altogether;

When insurers must be notified

these explanations highlight why you should notify your insurer if you are planning significant works to the property;

in particular, this includes structural alterations rather than routine decoration or general maintenance of your home.

Why empty or part-empty homes are high-risk during renovations

During renovations or other building works, your home is not only vulnerable to structural damage, but also to various additional risks. Vacancy materially alters the risk profile of a property. Routine heating patterns may change, water systems may be drained, and security arrangements may be temporarily modified. These factors can increase the likelihood of escape of water, malicious damage or undetected faults.

Exposed pipes might rupture, and you are then faced with an extensive escape of water throughout the home. The sparks from any machinery and plant in operation might cause a fire.

While your contractors – builders, carpenters, electricians, and other tradesmen – may typically be expected to arrange their own insurance, you may bear at least some loss through their errors, failings, or bankruptcy.

Similarly, insurance against loss or damage to contractors’ tools and material will be for themselves to arrange, but you may want to be certain to safeguard those tools and materials in your ownership.

What renovation insurance may cover

Types of renovation insurance are many and varied – so the cover offered will also vary from one policy to another. You may want to choose carefully to ensure that the building works insurance you choose is appropriate for your particular needs.

Typically, however, renovation insurance may typically provide cover against some or all of the following risks. Please note that limits and exclusions may apply:

Buildings and structure

building an extension, a loft conversion or underpinning the foundations are the kinds of work that might result in damage to the structure and fabric of your home;

some building works insurance policies are designed to protect against such losses;

Liability (landlord or owner)

as the owner or landlord of the property, you may be held liable for injuries or property damage suffered by visitors to your home, passersby, neighbours, or even the contractors themselves;

your renovation insurance may provide indemnity against such claims;

Theft and vandalism

theft and vandalism are constant threats to a building under renovation – especially if the premises remain empty and unoccupied overnight and during public holidays;

Public liability for tradespeople

any self-employed tradesmen at work on your home may cause injury to or damage the property of a neighbour, visitor, or member of the public;

renovation insurance may cover the legal costs and any compensation that must be legally paid by the responsible tradesman.

Because renovation insurance policy terms may vary among providers, always speak to your insurance provider to ensure you under what the cover entails.

Types of renovation and the level of cover required

For a house under renovation, insurance considerations will typically depend on the nature and scale of the works, and whether these need to be disclosed to your existing insurer. You may need to consider whether the planned alterations represent a change in risk under the terms of your current policy. For example:

Cosmetic works

purely cosmetic works – you want to give your home a lick of paint, for example – are of little interest to your insurer;

you may want to press ahead with any cosmetic works without informing your insurer;

Kitchens and bathrooms

a similar consideration might apply if you are planning a makeover for your kitchen or bathroom;

installing a new kitchen or bathroom rarely involves any structural alteration to the building – but if it does, it may make sense to let your insurer know;

Extensions and structural changes

if you are planning an extension or structural changes, that is when you may typically need to inform your insurer;

as we have noted, structural alterations are almost certain to be regarded as a change in risk – likely to result in a partial or complete restriction of your regular home insurance;

appropriate renovation insurance may be required to restore the safeguards your home continues to require during the building works;

Full refurbishment

full refurbishment of your home may or may not involve structural changes or building works that compromise the structural integrity of your home;

nevertheless, a full refurbishment is likely to require significant building works, and you might want to describe the exact extent of these to your insurer;

if necessary, you might then consider house under renovation insurance.

How long a property can be empty during renovation

One of the most significant areas of risk is the possibility that you need to move out for the duration of any building works. Your home or let property then stands empty and unoccupied. Insurers will consider the dwelling unoccupied if no one is living there, even though your contractor and tradesmen may be there every working day.

An unoccupied building is at greater risk than one that is normally occupied. Events that go unnoticed and unreported might quickly develop into major incidents. An unoccupied building also attracts the unwanted attentions of thieves, vandals, arsonists, and other intruders.

Although the precise period may vary from one insurer to another, a property is typically designated unoccupied when no one has been living there for between 30 and 60 consecutive days and nights.

While specialist, standalone unoccupied property insurance restores the protection a house under renovation may require, most policies require regular, daily inspections of the site and may also insist on more rigorous security arrangements.

With insurance for properties undergoing works, the policy length may often be flexible – so if you choose a 6-month renovation insurance policy but the project overruns, for example, the cover can be extended a further three months or so. (This may vary depending on the insurance provider).

Renovation insurance vs unoccupied property insurance

It is worth emphasising that although your home might be unoccupied during all or part of any building works, there are critical differences between renovation insurance and unoccupied property insurance.

Renovation insurance protects your property during building works such as extensions, loft conversions, refurbishment, and structural alterations. The cover is designed to provide indemnity against the increased risks arising from structural instability, open roofs or exposed walls, the risk of fire or an escape of water, and the theft of tools and materials.

Unoccupied property insurance, on the other hand, is for any unoccupied property, whether or not renovations or other building works are in progress. This standalone insurance is designed to restore cover when buildings are exposed to the particular risks associated with them being empty and unoccupied – not to the structural and other risks associated with a house under renovation.

Getting a renovation insurance quote

You have discovered why your current home or landlord’s insurance policy is probably inadequate if building works are planned, you understand the additional risks when you have the builders in, and the elements of cover typically offered by renovation insurance, and have recognised the further risks that develop when the dwelling has to be left unoccupied for longer than a month or so.

Armed with that knowledge and understanding, you may be ready to seek your renovation insurance quote.

What may the insurance provider consider when providing a quote?

The nature, scale and duration of the works, whether the property will remain occupied, and the type of contractor appointed may all influence underwriting decisions. Some policies may allow minor works to proceed without amendment, while others may apply specific endorsements, excess adjustments or temporary exclusions.

Before seeking renovation insurance quotes, it may be sensible to prepare a detailed outline of the project. This can include architectural drawings, structural engineer reports, planning permissions where required, a breakdown of projected costs, and confirmation of contractor qualifications and insurance arrangements.

Providing accurate information at quotation stage may help ensure the cover offered reflects the scope of works. Non-disclosure or inadvertent omissions may lead to complications at claim stage.

You may also wish to clarify whether the policy covers contract works on a reinstatement basis, whether materials stored off-site are insured, and how partial completion is treated if the project is delayed.

Understanding excess levels, policy limits and any inner limits for theft, tools or plant is equally important. Where the property is subject to a mortgage, lenders may also have specific insurance requirements that need to be satisfied during the renovation period – check with your mortgage provider if you are unsure.

A coordinated approach between homeowner, contractor, and insurance provider may help reduce uncertainty and maintain continuity of protection throughout the project lifecycle.

Your obligations under your renovation insurance cover

Insurers frequently impose inspection requirements, minimum security standards and specific conditions relating to utilities when a property is unoccupied and/or being renovated.

Failure to comply with these conditions could affect the validity of a claim, so make sure you understand what your obligations are under the terms of the cover.

Insurance and your renovation project

Renovating a property involves far more than appointing contractors and managing budgets. There are multiple insurance considerations to review, including whether your existing buildings policy remains valid, whether the works amount to a material change in risk, how long the property may be unoccupied, and what level of structural or liability cover may be appropriate. Overlooking these factors can create unintended gaps in protection at a time when the risk profile of the property is heightened.

Because every renovation project differs in scale, duration and complexity, it is sensible to seek professional advice before works begin. An experienced insurance broker can help you assess whether your current policy is suitable, identify any exclusions or conditions that may apply, and explore specialist renovation or unoccupied property cover where required.

At Cover4LetProperty, we understand the additional exposures that can arise during building works. Our team can help you review your circumstances and source renovation insurance aligned with your project requirements, subject to underwriting criteria, terms and conditions. Speaking to a specialist before the works start can help you proceed with greater clarity and confidence.

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