What insurance to check before renovation works start

What insurance to check before renovation works start

Insurance is not the most exciting part of a renovation. But it's the part that matters most when something goes wrong - and things do go wrong on construction sites, even well-managed ones. Here is what every homeowner and landlord should check before works begin.

Your home insurance policy

Most standard home insurance policies contain clauses that restrict or void cover when "building works" are taking place. The definition varies by insurer, but it typically includes any work involving structural changes, removal of internal walls, roof openings, or any project over a certain value (often £5,000–£10,000).

If you proceed with a refurbishment without notifying your insurer, you may find that a claim - even one unrelated to the works - is refused. Notify your insurer in writing before works start and confirm in writing what is and isn't covered during the construction period.

Building works insurance / contract works insurance

For significant refurbishments, you may need a separate contract works insurance policy (also called contractors all-risk or CAR insurance). This covers the works themselves - materials on site, works in progress, accidental damage during construction - in addition to third-party liability.

Your contractor should hold their own CAR policy. Bayocorp maintains contractor insurance documentation and can provide the relevant certificates before appointment. Always ask for a copy of your contractor's insurance schedule before works start and confirm it covers the value of your project.

Employers liability

If your contractor employs anyone - even on a casual or subcontract basis - they are legally required to hold employers liability insurance of at least £5m. This covers workers injured on your property during the works. Without it, the contractor is operating illegally and you may carry some liability exposure as the occupier. Ask for the EL certificate. Any legitimate contractor will have one and will provide it without hesitation.

If you are a landlord

Landlord insurance policies also typically contain renovation exclusions. If the property is vacant during works, you may also trigger the unoccupied property clause - which can invalidate or restrict cover after a set period (usually 30–60 days). Check your landlord policy carefully and speak to your broker before the property is vacated.

Questions to ask every contractor

• "Can you provide a copy of your public liability insurance certificate?"
• "Can you confirm the level of cover and the policy number?"
• "Do you hold employers liability insurance and are all operatives on site covered?"
• "Does your contract works / CAR policy cover the full value of this project?"