Do you know that your normal home insurance or landlord insurance may not cover your house during a major renovation?
You would not drive on the road without at least a third party car insurance. So why would you let home uninsured?
Like other insurances, insurance companies provide you an insurance cover based on a set of facts and assumptions. In a simple way to explain this, for example, your home insurance is to cover your house when you are living there. Your landlord insurance covers your house when you rent it out to tenant(s).
Depending on the policy wordings, your home insurance may cover for minor works & DIY. However, it is always good to be upfront with your current insurance company and ring them if you are not sure.
However, when you are leaving the house empty for a long period of time or carrying out major construction work, it changes the risk characteristics completely and may invalid your insurance.
What if you are having some roof works outside and some objects fall on someone walking on the pavement? What if your house got burned down in an accident occurred during the construction works. What if your builder swung around a digger and knocked down your neighbour's garage?
If the builder you hired did not have adequate employer or public liability insurance and an accident happens, either they exhaust their insurance cover and go bankrupt or simply run away, the ultimate liability may fall on you in the end as the landlord of the house. In any case above, your normal home insurance may not cover you at all.
Therefore, getting yourself an appropriate renovation/refurbishment insurance is the most important thing you have to do before you start your project. This type of insurance is designed to cover the risk characteristic of a typical home refurbishment environment.
The cost of a home renovation insurance is usually very affordable and worth every penny you paid. Usually, a typical home renovation insurance would provide cover for
- Unoccupied property for a long period of time
- Public liability: In case something happens on your site affecting third parties.
- Alternative accommodation: In case the accident prevented you to live in the house
-Material and tools: Construction tools and materials can be valuable and expensive to be replaced . A construction site has a higher risk of being burgled.
Not all projects are the same. Maybe even home renovation insurance is not enough if you are having a mega project or grand design. Therefore, you need to speak to a good insurance broker to understand what type of insurance you would need.
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Disclaimer: The content is for information purposes only and does not address the circumstances of any particular individual or entity. Nothing in this blog constitutes professional advice, a solicitation, recommendation, endorsement or offer by Endeavour Construction Consultants Ltd or any third party services.