Why home improvers must check insurance

A property market in the doldrums and cost-of-living issues has seen more homeowners opt to renovate rather than move.

According to research from insurance broker, Lycetts, 71 per cent of those polled said they are unlikely to sell up and would, instead, be investing in their existing properties.

While home improvements can add thousands to a property’s value and improve quality of life, Lycetts’ Harry AppletonMetcalfe says there is a risk if arrangements for adequate insurance cover are not in place.

He stresses the importance of a Contract Works insurance policy, which can provide protection for the owner, the contractor and the property for the duration of a project.

He adds: “Minor improvements such as plumbing may be covered by home insurance but homeowners must inform their insurer of the start and completion dates of the work. If an insurer is unaware and there is a claim, it might not be paid out.

“Structural works require specialist renovation insurance cover but this varies, so it is important to seek expert advice. Contents cover, for example, may not be included and this can prove costly if roofs or ceilings collapse destroying valuable possessions.”

Lycetts also warn against a common misconception that a contractor’s liability insurance would be sufficient if anything went wrong but this is not always the case, which is why it is vital that buildings insurance is reviewed and updated where required, to ensure cover is in place.

A specialist renovation works policy normally includes cover if the contractor goes bust or walks off the job before it is complete but it’s important to check.

You should also check for conditions attached to unoccupied homes that are being renovated.