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If you’re planning a major home improvement project, whether that’s a side-extension, loft conversion or a total refurb, it’s important to understand the difference between home insurance and renovation insurance before the builders arrive! 

Many UK homeowners assume their standard household insurance policy will protect them during building works, but this isn’t always the case. If you don’t have the right insurance in place, you could face costly risks that standard home insurance might not cover.

What Standard Home Insurance Covers
Typical household insurance is designed to protect your property against everyday risks such as fire, flood, theft and accidental damage. However, most policies specifically exclude major renovation or structural work. 

As a guide, most insurers regard ‘major’ building works as those which cost in excess of £20,000 – but always check.  If you begin building without notifying your insurer, your cover could be reduced, or even invalidated.

What Renovation Insurance Covers
Renovation insurance (sometimes called renovation cover) is a specialist policy created for properties undergoing building work. It offers protection for:

• Structural damage caused during renovations

• Fire, flood or storm damage to your home whilst the building works are ongoing

• Theft of materials, tools or fittings kept on-site

• Liability if someone is injured during the project

In short, home insurance protects your finished property, while renovation insurance protects your home during construction. 

And even if your builder has insurance, their policy may only cover their own work, not damage to your existing property or stored materials.

For UK homeowners, landlords and developers, this distinction is crucial. Without renovation insurance, you could face unexpected costs running into thousands of pounds. 

That’s the reason that many mortgage lenders ask to see proof that you have renovation insurance in place before approving works.

It's always best to play it safe when it comes to insurance.  So, to keep it simple, if your project goes beyond redecorating, speak to a specialist insurance broker like Prizm Solutions before work begins. That way, you’ll know what insurance you need. 

Our experienced team is on the end of the phone, so please give us a call and let us know how we can help.  We’re always happy to offer some advice and point you in the right direction or, should you wish, provide a quote for an insurance policy that will cover your current circumstances. 

As well as Home Renovation Insurance, we also offer general Household Insurance, Personal Accident Insurance, Unoccupied Property Insurance, Flood Insurance and many other business and personal insurances to give you peace of mind at home and work.