Renovation Insurance: Myths vs Reality

Renovating a home is an exciting project, but it also brings risks that many homeowners do not fully understand. As a result, renovation insurance is often overlooked or misunderstood.

To help you avoid costly mistakes, here are the most common myths about renovation insurance, along with the realities every homeowner should know before building work begins.

Myth 1: My standard home insurance will cover the renovation.

Reality:
Most standard home insurance policies exclude cover when major renovation or structural work is taking place. This means your home may not be protected during one of its most vulnerable periods.

What people often do not realise is that even notifying your insurer of upcoming work can result in parts of your policy being restricted. Significant changes, such as removing walls, altering roofs, or making the property temporarily uninhabitable, can invalidate your home policy altogether.

What could happen:
A fire, flood, storm incident, or accidental damage during the renovation could leave you completely uninsured, forcing you to fund all repairs yourself.

Myth 2: My builder’s insurance covers everything.

Reality:
Your builder’s insurance is designed to protect them, not you. Their policy will cover their tools and equipment, as well as their liability, but it will not automatically cover your materials, the existing structure, or any damage caused during the renovation.

What many homeowners do not know is that to make a successful claim under a builder’s policy, you would usually need to prove that the builder was at fault. Without clear evidence of negligence, insurers often reject claims.

What could happen:
If materials you purchased are stolen or your existing property is damaged during the renovation, you may not receive any compensation under the builder’s policy.

Myth 3: Small renovation projects do not require specialist insurance.

Reality:
Even small projects, such as bathroom refits or kitchen updates, carry risks. These include leaks, electrical faults, accidental fires, or damage to plumbing and pipework.

People often think that because the project is minor, the risk is low. However, renovations frequently uncover hidden issues, such as damp, rotten joists, or unstable foundations. If these lead to further damage during the work, you need the right insurance to cover repairs.

What could happen:
Something as simple as a burst pipe during a bathroom renovation could damage floors, ceilings, and electrics, costing thousands to fix.

Myth 4: Insurance is only needed for structural work.

Reality:
Non-structural renovations still create risk. Any work involving gas, plumbing, heating, rewiring, or roof access can cause significant damage if something goes wrong.

What homeowners may not know is that many insurers require notification even for cosmetic upgrades that involve high-value materials, specialist contractors, or extended periods when the property is left unsecured.

What could happen:
Accidental damage, theft of materials, or injury to a contractor could leave you responsible for claims if you do not have proper cover in place.

Myth 5: Renovation insurance is too expensive for short projects.

Reality:
Renovation insurance is often far more affordable than people expect, especially compared to the financial impact of an uninsured incident. Even short-term policies can provide comprehensive protection tailored to your project’s duration and complexity.

What homeowners may not know is that some providers offer flexible cover that can be extended if the project runs over schedule, which is common in renovation work.

What could happen:
Delays, unexpected structural issues, or severe weather could extend your project. Without proper cover, you risk being uninsured for part of the build.

Renovation insurance is an essential safeguard for anyone improving their home. It protects your property, finances, and peace of mind from the many risks that arise during construction. By understanding the truth behind common myths, you can make informed decisions and ensure your renovation project stays on track, no matter what challenges arise.