How Renovations and Extensions Affect Your Home Insurance

Doing home renovations or extensions can increase the value of your property. It can also make your living space better and help you save energy. However, these changes can impact your home insurance policy. If you plan to do a loft conversion, kitchen remodel, or major structural work, you must understand how these renovations will change your insurance cover. You should also think about what extra policies you may need. Lastly, keep your home safe during the project.

Do you need to inform your insurer about renovations?

Why should you notify your insurer?

Many homeowners believe their home insurance policy will cover all home improvements they do. But this isn’t always the case. If you have significant building work done, you need to inform your insurer. This is important so they can update your insurance cover correctly. If you do not let them know, you could lose coverage if something goes wrong.

What types of renovations require notification?

You should notify your insurer if you’re planning:

• Changes to the structure of your home (like a loft conversion, extensions, or removing load-bearing walls)
• Significant building work that affects the structure of your home
• Adding kitchen units, putting in bathrooms, or rewiring your house
• Using building materials like solar panels, underfloor heating, or a new roof
• Making an unoccupied property into a livable space

If your renovation is small, like painting walls or getting new furniture, your home insurance policies may not change.

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What happens to your insurance cover during renovations?

How do renovations affect home insurance?

Home renovations can increase your insurance premium for several reasons:

• Higher property value – When you improve your space, it increases the cost of the works and the building materials. This means the rebuild cost also goes up.
• Increased risk of theft – Construction sites often have valuable tools and materials. This can result in burglary.
• Greater liability risks – Having workers on your property raises the chances of public liability claims.

Will your home insurance be valid during renovations?

Most home insurers offer basic coverage for small renovations. But if you are planning bigger projects, your policy might not cover them. In these cases, you may need renovation insurance or unoccupied property insurance.

What additional insurance cover might you need?

Renovation insurance

A special insurance policyfor renovation keeps you safe during important building work. This policy can cover different parts of the project.

• Accidental damage to your property
• Public liability insurance in case someone gets hurt on-site
• Theft of building materials or tools
• Damage from fire, flooding, or ground movement during renovations
• Contractor negligence cover, which protects you if the builders cause damage

Public liability cover

If you run a project with different contractors, make sure they have public liability cover. This cover will protect you if their work causes injury or damages your property.

Alternative accommodation cover

If the renovation makes your home unlivable, some policies will cover the cost of alternative accommodation during the work.

Unoccupied property insurance

When you are doing major renovations and have to move out, your home insurance might not cover an unoccupied house for a long time. In this case, unoccupied property insurance can help protect against problems like theft, vandalism, and weather damage.

How to protect your home during renovations

Check your contractor’s insurance

Before you hire contractors, check that they have contractor’s insurance. This insurance protects against certain risks.

• Public liability insuranceprotects you from claims about injuries or damage to property.
• Employer’s liability insurance covers your employees.
• All-risk coverage protects materials and work that are not yet finished.
• Indemnity insurance helps cover mistakes made by the contractor.

Secure your belongings

During renovations, your home could be at greater risk for theft. Here are some things to consider:

• Keep your important items in a safe spot.
• Set up security cameras or alarms.
• Ensure that doors and windows are locked at night.
• Limit access to certain areas of your home.
• Use temporary security fencing to prevent unwanted entry.

Understand your policy terms

Review your insurance policyto ensure:

• Your coverage has home improvements.
• Your insurer covers accidental damage caused by builders.
• You have enough coverage for a house that is empty if you move out for some time.
• There are no rules about the materials you can use in the renovation.

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How do renovations impact your insurance costs?

What home improvements can increase your premium?

Some home improvements can increase insurance costs. This is because these changes can raise the home’s value or alter the risk involved.

• Loft conversions can increase rebuilding costs because of structural changes.
• Extensions create extra space, leading to higher costs.
• Swimming pools or hot tubs come with greater liability risks.
• Listed buildings require special materials, which can make repairs more expensive.
• Conservatories or garden rooms may require separate insurance.

What renovations could lower your premium?

Some changes can help keep your home safe. This can make your insurance premiumlower:

• Better security: stronger locks, burglar alarms, and CCTV.
• Updated plumbing and wiring: this lowers the risk of fire and water damage.
• Fire-resistant building materials: these boost safety.
• Energy-saving updates: options like double glazing and improved insulation.
• Changing old heating systems: this cuts down on fire hazards.

Correct as of 25 February 2025

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