Relying on Home Insurance or your builder’s Public Liability Policy Renovation work not a good idea
Updated: Nov 23, 2021
Most ‘Home Insurance’ policies exclude cover for Renovation work and the builder’s Public Liability Insurance will require negligence to be proven, which can be extremely time consuming and expensive.
The Renovation Site Insurance policy from Self-Build Zone covers the property whilst being renovated, even if you aren’t initially living in it. In addition, it covers all the new works and materials, right up to completion of the project (additional contents cover may be needed though).
More than likely you will have plant, tools and equipment on site and these will need to be covered.
We provide Employers’ and Public Liability insurance as standard as we know that other people, including family and friends, could be working on site and they may get injured or someone may cause damage to a third party or their property. It is important that they are adequately protected and that also includes the cost of defending and/or pursuing a claim.
If you have a Party Wall Agreement in place, with one or more neighbours, you will probably be responsible for rectifying any damage caused to their property (however serious) so you should seek professional Party Wall advice in this respect and make sure you have adequate cover in place.
We can also provide JCT 6.5.1 Insurance.
Renovation Site Insurance
Renovation Site Insurance is available in a range of different policy durations which can be extended as required. Using Site Insurance for a Renovation project will provide cover in all the places Home Insurance does not, including providing cover when the property is unoccupied prior and during the Renovation works. Most people do not realise that standard Home Insurance will not cover you adequately and carries many exclusions which can make it a waste of money. Simply relying on your builders’ Public Liability is a very short sighted approach and will not cover you unless you can demonstrate they were negligent. Site Insurance is the most practical and efficient way of covering your Renovation project.
Legal Expenses Insurance Cover
Renovation projects can be complex affairs because of the diversity of trades working on the site and the associated variety of risks or exposures that come with that. We have many years’ knowledge of what goes wrong, what the major issues have been and what causes clients the most stress. Not using properly written contracts probably causes more problems and upsets than anything else. Without a contract, you cannot prove the terms of engagement with professionals, contractors or suppliers.
We have known people lose tens of thousands of pounds because they failed to use proper written contracts. When it comes to trying to make claims without this it is very difficult as the ‘burden of proof’ is on you. With a contract, there is little escape. That is why with our contract package we give you unlimited use of the suite of contract wordings.
We back this up with the addition of Legal Expenses cover, which is provided as standard with all our Site Insurance (excluding developer’s insurance).
If a dispute arises, the legal team will provide you with essential legal advice to enable you to pursue a contractual dispute claim where there is a good prospect of success (terms and conditions apply).
By correctly using our contract templates you will have the necessary proof of the basis of the contract and hopefully enable a swift conclusion to any dispute.
Perhaps your Contractor is insured?
Relying on your contractors’ or tradesman’s’ insurance cover may not always be the correct course of action. Many contractors only have Public Liability cover which is not sufficient as no-one is taking full responsibility for the works in progress. Public Liability Insurance only covers negligent acts and it is sometimes a very lengthy and costly process to prove this.
A nearly completed build that is seriously damaged by fire, flood or storm could give rise to a serious loss which could be life changing and really does not bear thinking about, so minimise your exposure to risk by protecting yourself with the appropriate Site Insurance cover.