Property Under Renovation Insurance

A normal policy is written for a finished, occupied building, so major works and an empty property both fall outside what it will accept. Most wordings cut back or end cover once building work passes a stated value or the property is left unoccupied beyond a set number of days, which can leave a claim unpaid at the worst moment. Telling your existing insurer the property is being renovated will often see the policy restricted or cancelled, so a specialist renovation policy takes over and insures the building through the works instead.

Yes, and it is worth arranging cover before the first tools arrive. A standard home, buildings or landlord policy can be restricted or voided once a property goes under major renovation or is left empty, so the specialist policy needs to be in place from the day works begin. Give the insurer the scope of the project, its value, how long it will run and whether the property will be occupied, so the cover matches the work. Starting a structural project on ordinary cover, or leaving the insurer in the dark, is the most common way a renovation claim is refused.

Yes. The existing building is insured on a rebuild basis throughout the project, so damage to the standing structure from fire, storm, flood, escape of water or theft is covered while the work goes on. This matters because the existing fabric is often the most valuable thing on site and is at greater risk during works, with roofs opened up, walls removed and services disconnected. The sum insured should reflect the full cost of reconstructing the finished building, not the price you paid for it.

Yes. Alongside the existing structure, the policy insures the building works themselves, the materials and fittings waiting to be installed, and any extension being built, so a loss to the new work is covered as well as the old. Cover typically runs while materials are stored on site and as they are fixed into the building. On a larger project the works can be insured in joint names with the builder, so both parties have an interest in the same policy and a dispute over who pays is avoided.

Yes, and this is central to the product. A property being renovated is usually empty, and an empty building is a heightened risk of theft of materials and fittings, vandalism, escape of water and squatting, which is why ordinary cover pulls back once a property stands vacant. Renovation insurance pairs the works with unoccupied-property cover so the building stays insured while nobody is living or trading there. Expect the policy to carry conditions that go with an empty site rather than the open terms of an occupied building.

Because the property is unoccupied, the policy sets conditions the owner must meet to keep cover live. These commonly include regular recorded inspections, securing the building and its openings against entry, draining down or isolating the water supply where practical, removing obvious valuables, and keeping the site tidy and free of build-up that could feed a fire. Failing to keep to these terms can reduce a payout or defeat a claim, so read the unoccupancy conditions carefully and diarise the inspections from the day the property is left empty.

The line falls between changing how a building looks and changing how it stands up. Cosmetic refurbishment, such as redecorating, a new kitchen or bathroom, rewiring or replastering, leaves the structure intact and is treated as lower risk. Structural work, such as removing or moving load-bearing walls, building an extension, converting a loft or basement, or underpinning, alters the fabric and carries more risk, so it shapes both the cover and the terms. Tell the insurer which you are doing, because a project described as cosmetic that turns structural can fall outside the policy.

Yes, these structural projects can be insured, though they need to be declared as structural rather than cosmetic. An extension, a loft conversion or a basement dig-out changes the building and the works value, so the sum insured has to grow to include the new space, and the insurer will want the scope and duration up front. Basement work in particular raises the risk of escape of water and ground movement, so terms and excesses can reflect that. Cover the existing structure and the new work together so a loss to either is met.

Underpinning and work close to a boundary raise the risk to the property and to the people and buildings around it. The existing structure is insured while the ground is stabilised, though a history of movement can tighten the terms. Just as important is the liability side, because digging, scaffolding and demolition near a neighbour can damage their property or injure a passer-by. Public liability responds to that, and where the work affects a shared or boundary wall a party wall agreement with the neighbour is a separate legal step that sits alongside the insurance.

It depends on how the project is run. A main contractor working under a building contract will often carry the works and their own public liability, so ask to see their cover and check whether it names you and runs to the full value of the project. On smaller jobs, DIY or self-managed work, the responsibility falls to you as the owner, so the renovation policy needs to insure the existing structure, the works and your liability. Where a builder is engaged, the works can be arranged in joint names so both of you are covered under one policy.

It is strongly advised for anyone running a renovation. Public liability meets the cost of compensation and legal defence if the works injure a member of the public or damage property belonging to someone else, such as a neighbour hurt by falling material or a next-door wall cracked by the work. A renovation site brings scaffolding, deliveries, contractors and open ground into play, all of which raise the chance of a third-party claim. Cover is commonly written with an indemnity limit of £1m, £2m or £5m, chosen to suit the site and its surroundings.

If you engage labour on the project, employers’ liability is a legal requirement, not an optional extra. It covers claims from workers injured or made ill by the work you have them do, and the law sets a minimum indemnity limit of £5m. A genuinely independent contractor who carries their own cover may not count as your employee, but casual or paid help engaged directly by you usually will, so check the position before anyone starts. Arrange the cover as part of the renovation policy where you are taking people on.

Insure the existing structure at its full rebuild, or reinstatement, cost and add the value of the works, so the sum insured covers the finished building rather than the price you paid. Rebuild cost takes in materials, labour, professional fees and meeting current building regulations, and never the land beneath. If you set the figure too low, the insurer can apply average and scale the payout down in proportion: cover the building for only 70% of its rebuild cost and a claim is cut to 70% of the loss, on a partial claim as much as a total one.

Renovation cover is usually written for the expected length of the project, often in terms of 6 or 12 months, matched to your build programme. Set the period against a realistic timescale rather than the best case, because works frequently run over. If the project overruns, contact the insurer or broker before the policy lapses to extend the term, since cover falling away mid-build leaves the structure, the works and your liability exposed. Once the property is finished and occupied, it moves onto an ordinary home, buildings or landlord policy.

Yes, and a recently bought or inherited property is one of the most common reasons this cover is arranged. A house bought at auction or through probate is often empty and in need of work before it can be lived in, let or sold, which is exactly the point at which ordinary cover will not respond. A renovation policy insures the building from completion or the grant of probate, through the works, while it stands empty, and up to the day it is finished and occupied or sold on.

Yes. A landlord refurbishing a property between tenancies faces a gap where the building is empty and under works, so a standard landlord policy will usually restrict or suspend cover. A renovation policy bridges that gap, insuring the structure and the works while the property is unoccupied and no rent is coming in. Once the refurbishment is finished and a new tenant moves in, the property returns to an ordinary landlord policy. Tell the insurer the property is being refurbished rather than simply void, so the works are covered too.

A premium is built from the features of the individual project rather than a set rate. The main factors are the rebuild value of the existing structure and the value of the works, the type of work, cosmetic or structural, how long the project runs, whether the property is occupied or empty, the postcode and its flood and subsidence exposure, and the level of public liability chosen. Who carries out the work and whether a builder holds their own cover also count. The dependable way to gauge cost is to compare quotes from FCA-regulated brokers against your own project details.

Several steps can hold the premium down without thinning the cover. Give an accurate rebuild and works value so you are neither over-insuring nor risking average, keep the project period realistic so you are not paying for months you do not need, and improve site security with proper locks, boarding, fencing and lighting to cut the theft and vandalism risk on an empty site. Meeting the unoccupancy conditions, using a builder who carries their own liability, and comparing several FCA-regulated brokers rather than taking the first quote all help as well.

Renovation risks sit outside the mainstream, so a home-insurance comparison panel tends to decline once it sees an empty property under structural works, or hands back a price loaded to the top of its range. A broker who arranges renovation cover every day reads the project properly, matches the existing structure, the works and the liability to the right terms, and can reach specialist insurers that rate the risk on its merits. MyMoneyComparison does not advise or sell, but puts you in touch with FCA-regulated UK brokers who arrange this cover. Start by comparing property renovation insurance quotes with your project details to hand.