Home Insurance During a Renovation UK: What Your Policy Won't Cover

June 2025

Most homeowners assume their buildings and contents insurance automatically covers them throughout a renovation. It doesn't — at least not always, and sometimes not when it matters most. If a fire breaks out during a re-wire, or a pipe bursts in a property that's been empty while contractors finish the job, you may find your insurer declines to pay. Here's what you need to know before work starts.

Why Standard Home Insurance May Be Void During a Renovation

Standard household policies are underwritten on the assumption that the property is occupied, secure, and structurally sound. A renovation changes all three. The two most common clauses that create problems:

Unoccupied property clauses: Most standard policies limit cover for properties left unoccupied to 30 or 60 consecutive days. If the property is being renovated and you're not living there, or if contractors leave the site without making it habitable over a weekend, you may breach this condition — often without realising it.

Structural work exclusions: Many policies explicitly exclude damage arising from structural alterations, extensions, or demolition. This doesn't mean your walls aren't covered at all; it means damage caused by the building works — subsidence triggered by excavations, fire caused by hot works, collapse during demolition — may not be covered.

The key issue is that insurers define "renovation" differently, and some draw the line at cosmetic redecoration versus structural alteration. A kitchen refit is unlikely to be a problem. Underpinning, a loft conversion, or a rear extension almost certainly is.

What Specialist Renovation Insurance Covers

Specialist renovation or building works insurance — sometimes called "contract works insurance" — is specifically designed for properties under significant alteration. A good policy typically includes:

• Contract works cover: The building in its current state of construction, including materials on site
• Public liability: Third-party injury or property damage caused by the works (note: this overlaps with your contractor's policy)
• Existing structure cover: Damage to the parts of the building not under construction
• Employers' liability: If you're directly employing labour (as opposed to using a main contractor)
• Loss of materials: Theft of materials from site overnight or at weekends

What specialist policies typically do not cover: inherent defect (poor workmanship), consequential loss from delays, professional indemnity for architects or structural engineers (they need their own), or the contractor's own tools and plant.

Do You Need It If Your Contractor Has Public Liability Insurance?

This is where homeowners often make a costly assumption. Your contractor's public liability policy protects them against claims made by you or third parties for damage they cause. It does not protect your buildings or contents from other risks during the project.

Consider: a fire breaks out due to faulty electrical work on a Sunday evening when no contractors are present. Your standard insurer says the policy is voided by the structural work exclusion. The contractor's PLI says it wasn't their fault — it was the overnight wiring fault, and they dispute liability. You're left in a dispute between two insurers about an uninsured property.

Specialist renovation cover eliminates that gap. Whether you need it depends on:

• The scale of the works (cosmetic redecoration vs structural alteration)
• Whether the property will be unoccupied during works
• Whether your current insurer has confirmed in writing that your policy remains valid

That last point is critical — and most homeowners skip it.

Key Questions to Ask Your Insurer Before Works Start

Call your insurer and ask the following, before any work begins:

1. Does my current policy remain valid while structural works are underway?
2. What constitutes "structural work" under my policy's terms?
3. Is there an unoccupied clause, and at what point does it trigger?
4. If I need to vacate temporarily, does that affect my cover?
5. Do I need to notify you of the contractor's details or works schedule?

Get the answers in writing — by email if possible. If the insurer confirms cover in writing, you have a much stronger position if you need to make a claim. If they say your policy is affected, you know to source specialist cover.

What to Do If Works Are Delayed

One of the most common renovation headaches: the project overruns, the property remains unoccupied, and suddenly you're approaching the 30 or 60-day threshold in your standard policy.

Notify your insurer as soon as you know there's a delay. Many will extend the unoccupied provision for an additional period — sometimes for a small additional premium. If they won't, you'll need to convert to a specialist policy or take out unoccupied property insurance to bridge the gap.

Unoccupied property insurance (distinct from renovation cover) typically costs £15–£40/month for a standard property and covers fire, flood, escape of water, vandalism, and theft. It won't cover works in progress; for that you need full renovation cover.

Approximate Costs for Renovation Cover

Specialist renovation or building works insurance typically costs £200–£600 per year for a standard residential project, depending on:

• The rebuild value of the property
• The contract value (total cost of works)
• Whether the property will be occupied during works
• Whether the project involves basement or underpinning work (higher risk)

Some insurers offer single-project policies; others offer 12-month policies that can be cancelled on completion. Get at least three quotes — NFU Mutual, BuildStore, and specialist brokers like Renovation Insurance Brokers or Adrian Flux are worth including in your search.

5-Point Checklist Before Works Begin

1. Notify your current insurer — in writing — about the nature of the works, start date, and expected duration. Get their response in writing.
2. Check the unoccupied clause — if you'll be away for more than 30 days, confirm your cover isn't affected.
3. Verify contractor insurance — ask for certificates of employers' liability (minimum £5m) and public liability (minimum £2m) insurance before anyone starts on site.
4. Consider specialist cover for any structural work, even if your insurer hasn't flagged an exclusion — the cost is low relative to the risk.
5. Keep a site diary — dates of contractor visits, what work was done, and any incidents. This becomes critical evidence if you need to claim.

Ready to plan your renovation? Renovate Me gives you a step-by-step roadmap — try it free

For a more detailed breakdown of all three policy types — contract works, public liability, employer's liability — plus contractor certificate checklists and structural warranty requirements, see Home Renovation Insurance: What You Need During a Build.