Home Renovation and Extension Insurance

With house prices ever increasing more home owners are turning to renovations and extensions to provide the home they want rather than looking at having to purchase again. While this can be an incredibly rewarding process there is the problem of having the right insurance in place during the works. Most home insurers will need to be notified if works are planned at the property and may impose restricted cover, increased excesses or wish to cancel the policy as a result.

If you are planning a renovation, conversion or extension our Home Renovation Insurance experts are on hand to assist. We can cater for the following:

• Home Insurance with works up to £250,000
• JCT Contract Insurance
• Commercial to Residential Conversion Insurance
• Grade listed renovations and conversions
• High Value Renovation Works
• Long term projects up to 2 years
• Range of covers available from Fire, Lightning, Explosion, Aircraft through to Full Cover during the works
• Short Term Policies for Unoccupied Properties undergoing works with options for 3, 6 or 12 month policy periods.

What do underwriters need to know to insure a property correctly during home renovations or extensions?

If you are planning on undertaking a renovation or extension you need to ensure you have the right cover in place. Not all projects are the same and our Renovation Insurance specialists will guide you through the process and create a tailored policy to meet your exact requirements.

We work closely with our clients to ensure they are protected and in order to assess the covers required we will need to know:

• The value of the works – this is the cost of the contract not how much the property will be worth on completion
• What are you doing to the property – internal renovations or extensions. Basement works will require additional information
• Will the property be occupied during the works or left unoccupied?
• Planning Permission – do the works require planning permission and has this been granted?
• Are the works under JCT Contract conditions – we will need to know what Clause is being applied 5.4 A,B or C
• Timescales – when will works start and finish
• Details of the contractors
• Do your contractors have adequate insurance in place – do they hold Public Liability and Contract Works cover?

Following the works we will also work with you to ensure your home insurance reflects the works as the rebuild value is likely to have increased.

Can I cover JCT Contracts under the Clarke Williams Home Renovation Insurance scheme?

As property insurance specialists we are able to cater for properties undergoing minor works through to major renovations that fall under JCT Contracts. You may be advised by your architect to arrange your renovation works under a JCT Contract which will impact the insurances that you require.

Typically most home insurance providers will not be able to cover your property under JCT clauses due to the requirement for naming the contractor on the works, you will therefore require a specialist policy to cover the value of the works and the rebuild of the property while the works are ongoing. There are 3 options available on JCT Contracts:

Clause 5.4A – the works by the contractor
Aimed at projects where there are no existing structures (i.e. new builds) it states that the contractor takes out the contract works insurance policy and names the Employer as Joint Assured. This means that in the event the Employer is sued as a result of the contractor’s negligence then the policy will respond as if the Employer was the Insured.
Typically insurers wordings include an extension that automatically note interested parties and/or an Indemnity to Principals clause but if your Employer requires their name to be on the specifically noted policy this can be added upon request.

Clause 5.4B – the works and existing structures by the Employer
Aimed at projects where there is an existing structure (e.g. an extension or refurbishment within an office block). The Employer arranges cover for the contract works and for the existing structures. It is important to note that the insurance cover in respect of existing structures is not always available on an all-risks basis (like the Works insurance) and may be limited to loss or damage due to a ‘Specified Peril’, for example, fire, lightning, explosion, and aircraft.
Similar to 5.4A both the contractor and employer are noted on the insurance policy, this means that the insurer is unable to subrogate against either party e.g. if the contractor negligently causes a fire, the insurer of the existing structure/works cannot look to the  contractor’s public liability insurers for payment of the loss.

Clause 5.4C – the works and existing structures by other means
Before the introduction of the 2016 suite this clause under the Minor Works contract envisaged two separate policies:

The Employer insuring the existing structure in its own name
The Contractor insuring the works in its own name
However, it was realised that Clause 5.4C raised a number of issues which hadn’t previously been considered, for example:

• The contractor not being noted on the existing structure insurance as joint insured meant that the contractor’s public liability policy was open to losses as a result of their negligence.
• The homeowner found the cost of obtaining appropriate cover prohibitive.
• The nature of the works was more complex than an Employer/Contractor relationship e.g. the works being procured by a tenant or tenants of a multi-let property who were unable to insure the existing structure
  Complex renovation project?

We are able to cater for even the most complex projects including basement works, projects over £2m value, long term projects or multiple properties, call us on 01732 252898 to discuss your requirements and we will work with you to provide a truly comprehensive solution.

Need a quote for your Home Renovation Insurance?

If you would like to see what options are available for your Home Renovation Insurance, give us a call. Our service includes the following:

• A no-obligation review of your insurances
• Identification of any gaps in cover
• Help you to arrange a policy that meets your needs
• Answer any questions you may have
• Comparison of insurance quotes & cover from multiple insurance companies (we’re independent so not tied to any insurers)
• Availability of instant cover
• If there is a better deal out there, we’ll tell you. You can still transfer your insurance to us and try out our service
• Option of face-to-face, telephone or online communication
• Ongoing one-to-one support throughout the year
• We’ll be here to help if you need to make a claim