Whether refreshing interiors, making larger structural changes or undertaking a full-scale extension, renovating your home is an exciting opportunity to improve both its value and your lifestyle. But with it comes some key considerations to factor in, from the architects and contractors you use to the designs you choose; one that is often overlooked, however? The insurance cover you need have in place. 

As your property undergoes building works, its risk profile will alter, meaning having the right insurance is paramount. Go without or neglect to update your current policy and your home will be uninsured against things like accidental damage, severe weather and theft. Working with a specialist broker like Acrisure before your renovation begins ensures that your insurance evolves with the project and your property, assets and finances remain protected every step of the journey. 

“Major building works fundamentally alter the risk profile of a property,” explains Scott Feltham, Private Client Director at Acrisure. “A standard home insurance policy is designed to insure a completed, occupied home, whereas renovation projects introduce construction risks that many standard policies either restrict or exclude. Specialist renovation insurers consistently highlight that losses occurring during building works are often more severe and complex than those arising in an ordinary residential setting.”

From basement excavations and loft conversions to full refurbishments and even listed building restoration projects, the scenarios that can affect insurance cover when renovating a home are hugely varied — which makes it imperative that you work with an experienced and knowledgable broker to make sure you have the right cover in place.

Before your renovation project even begins, Acrisure’s personal service means a dedicated advisor will get to know your renovation inside and out, using their specialist knowledge of the key risks involved in building works to make sure you’re covered for every eventuality. “Acrisure works closely with clients throughout the project lifecycle by reviewing revised project budgets and build costs and actively monitoring changes to project scope,” explains Scott. “We also liaise with specialist renovation underwriters on behalf of our clients when the value of contract work increases and can help with extending policy periods where projects overrun.

“In addition, Acrisure’s dedicated service means we know if and when to adjust liability or non-negligent liability limits while ensuring lenders, project managers and contractors’ requirements continue to be met. Our role is to ensure the insurance evolves alongside the project, rather than remaining static while the risk changes.”

If you’re planning works, Scott recommends homeowners contact Acrisure as early as possible, ideally during the planning and budgeting stage, and certainly before contracts are exchanged or any works commence.

“Many homeowners assume their existing insurer will automatically continue cover throughout a renovation project,” he says. “However, insurers often have notification requirements and may impose restrictions, amend terms, increase premiums or require specialist renovation insurance. Failure to notify insurers could jeopardise cover in the event of a claim.”

For particularly complex or large projects, this is even more important as it gives the Acrisure team time to undertake a full bespoke evaluation of your project, analyse the risks and create a custom report based on your specific needs. They will then approach specialist insurers to secure your protection, which may involve a network of different coverage solutions ranging from existing structure and building work materials protection to property owners liability protection and advance loss of rent. “Early engagement allows us to review the scope of works, contractor arrangements, project values and potential liabilities to ensure appropriate protection is in place from day one,” adds Scott.

Of course, even with the best will in the world, building works do not always run smoothly. Projects overrunning or becoming more expensive than estimated is extremely common but, thanks to Acrisure’s one-to-one service, your dedicated advisor will be on hand to make sure your cover evolves with your works.

Having someone in your corner to help take care of these details is invaluable, explains Scott, especially as specialist renovation insurers routinely recommend allowing contingency within both project timelines and budgets because the majority of projects experience delays or cost increases. “If the scope, duration or cost of works materially changes, insurers must be informed promptly. Failure to notify insurers may lead to inadequate sums insured and potential underinsurance at the point of claim.”

And once your building works are completed and you have your gorgeous new dream home? Acrisure will remain on hand to ensure your coverage reflects the end result of your project. “Completion of the works is a key milestone and should trigger a full insurance review,” says Scott. “Our team will undertake a full reassessment of the property, looking at its new rebuild value, reviewing the contents insurance in place, taking into consideration any new security features which may have been installed, and removing the temporary cover in place during the build project.

“A successful renovation often materially increases the value and complexity of a home. The insurance should be updated to reflect the improved property, not the property that existed before the works began.”

For anyone thinking about a renovation project, Scott’s advice is simple: “Treat insurance as part of the project planning process, not an afterthought.” Here are his five key recommendations:

• Engage your broker early. Insurance considerations should be discussed before work starts, not after contracts are signed.
• Use reputable contractors. Verify qualifications, references, public liability insurance and, where applicable, professional indemnity cover.
• Insure the project properly. Do not assume your existing home insurance or your contractor’s insurance will respond to every loss scenario.
• Allow for change. Build realistic contingencies into both programme and budget and keep your insurer informed of significant developments.
• Protect the end value. A renovation is often one of the largest investments a homeowner makes. Correctly structured insurance protects both the existing property and hard-earned money being invested into it.

Discover more at acrisure.co.uk