Home renovations are rising in the UK, with almost seven million UK homeowners (opens a new window) planning to renovate their homes between 2025 and 2027.
For homeowners, single-story rear extensions, loft conversions, kitchen updates, and energy-saving enhancements are proving to be highly popular.
However, renovations can invite risk into your home – changing the liabilities and risk profile of your house. One key option for homeowners to protect their house during construction is securing appropriate insurance coverage.
‘Improve not move’: why are homeowners looking to renovate?
A key and consistent reason for renovations within the UK is the age of its housing stock. As such, many projects are necessary repairs or upgrades, not purely cosmetic projects.
However, in recent years, many homeowners are opting to renovate their homes instead of moving. Since interest rates began rising in late 2021 – coupled with growing cost of living pressures – the ‘improve not move’ trend has been growing among UK homeowners. Instead of taking on higher mortgage costs, many people have instead elected to improve their current home via extensions, loft conversions, or kitchen upgrades.
Furthermore, Government incentives regarding EPC ratings and net-zero housing are also encouraging retrofits. Common energy-related upgrades include, insulation, double glazing, heat pumps, and efficient heating systems.
What risks do home renovations introduce?
Implementing large, complex renovations or structural changes to your home may expose you, hired contractors, and your house to a variety of risks, these can include:
Accidental damage to household and its contents from builders or contractors
Accidental damage to neighbours’ homes, or nearby public properties
Fire or water leakage from construction works
Injury to contractors or occupiers of household during construction works
Elevated risk of theft within household during periods of non-occupancy
Renovation: the time to invest in insurance
Even with comprehensive home insurance, you may need specialist insurance policies to fully protect yourself and your house during renovations.
No matter the size or scope of project, it is prudent to factor in insurance as part of your renovation plan and budget – to ensure your investment is properly protected.
Complex renovations could include contractors, subcontractors, and machinery on site. Typical household insurance policies are unlikely to cover the works themselves, as insurers commonly place restrictions or conditions based on the type and value of work carried out, as well as, the security of the property during renovation.
Key policies that help protect your home during renovation include:
Contractors All Risks policy, as a total project solution
Non-negligence cover, for if your home is terraced or has a neighbouring property in close proximity
How brokers can help you
It is critical before any works begin you inform your broker or insurer of any planned construction. Furthermore, it is advisable to not sign a contract with builders or architects until you have discussed plans first with your broker or insurer as some contracts may not be accepted by insurers.
Brokers are on hand to help explore how any potential renovations interact with your current insurance policy – ensuring you are able to make an informed decision.
Advice from your broker is free, and experienced insurance professionals can guide you through the process to help source suitable cover that ensures your home and assets are adequately protected both during and after the works.
Talk to us
At Lockton Private Clients, we understand the benefit of having a personal service for people leading busy lives that value reassurance from insurance experts.
Our team of experienced advisors guide you through process of creating bespoke insurance solutions that align perfectly with your individual requirements and aspirations.
For further insights, visit our Private Clients (opens a new window) page.
