Insurance – Extend/Remodel

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Protect your project against any eventuality by putting insurances in place before work starts

What do I need insurance for?

Insurance protects your build against theft or natural damage and covers liability claims against you for accidents and injuries that could occur on site.

What are the different types of insurance?

Building insurance – covers risks to the existing building.

Public liability insurance – covers claims brought against you by a third party or member of the public.

Employer’s liability insurance – covers any subcontractors you employ that are working on site.

Personal accident insurance – insures you against any accidents on site.

Legal expenses cover – provides finances in the event of disputes or other legal issues that may arise.

Contractor’s all risk policy (CAR) – covers the building site and its contents throughout the project against, fire, theft and other incidents.

Do I need to have them all?

Insurance isn’t a legal requirement, however it is strongly recommended. Thankfully there are a number of companies who provide specialist self-build insurance that incorporates all of the above together.

How much will it cost?

Prices vary, but expect to pay about 0.5 per cent of your build cost.

When aren't I covered?

Where there is an existing structure forming all or part of a renovation, conversion or extension project buildings insurance does not automatically provide cover for the existing building. This is because buildings policies carry a standard clause that excludes cover on a property whilst it is undergoing alteration, renovation and sometimes even maintenance.

In addition Buildings policies will not normally provide cover on a property that is being left uninhabited for more than say 30 or 60 days. If a property is undergoing a major renovation and it is uninhabited during the works for 6 months or so – you are wasting money buying buildings insurance as no one is providing cover on the property.

If you manage the extension yourself and there is a loss that causes damage to the existing structure the home insurer expects to sue the builder for negligence. This in fact turns out to be the policy holder who they cannot sue and so they decline the claim for non-disclosure of facts.

The simplest way to correctly insure these projects is to take out a site insurance policy which is extended to include an existing structure. Unlike buildings insurance which covers fire, flood, earthquake, and other named perils – Site Insurance covers all risks. So if you do inadvertently knock your existing structure down, it will be covered.