If you're planning to renovate your home, you may be wondering whether you need to tell your insurer. The asnwer is usually yes. It depends on the type of work you're having done and your insurer's requirements.
In this article, we’ll break down the types of renovation that might affect your home insurance, and when and how to tell your insurer.
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At a glance
- You need to tell your insurer about any renovations that could change the structure or value of your home.
- Moving out while works are being done? Make sure to let your insurer know.
- Adding a bedroom or a bathroom can change your home’s rateable value, so it’s essential you tell your insurer.
What types of home renovations might affect my insurance?
You need to tell your insurer about any renovations that could change the structure or value of your home, as some home improvements could affect the type of home insurance policy that best suits your property. If the property is damaged during building work and your insurer is not aware that you were renovating, your insurer may reduce or refuse a claim depending onthe circumstances and your policy terms.
Here are some examples of home renovations that might affect your insurance:
Structural renovations
You’ll need to tell your insurer about building works or any DIY work that could affect the foundation, framing, or roof of your home. This includes coverting a garage into living space, replacing the roof or installing double glazing or solar panels.
Changing the use of a room
A recent study of 2,000 homeowners found that 75% had considered repurposing a room, with 21% changing the use of a loft and 17% converting a garage into a workspace.1
According to the HomeOwners Alliance (HOA), a loft2 or garage3 conversion can add up to 20% to your property’s value. However, you must inform your insurer before work starts and again when the work is complete. The work may have increased the cost to rebuild your home from scratch (its rebuild value), which will affect your premiums.
Major cosmetic renovations
A major cosmetic renovation is any work that significantly changes the appearance of your home. This could be painting the exterior walls, replacing the windows, or laying new decking. All of these renovations can create extra risk, for example, leaving your property open to weather damage.
Rewiring
If you’re having your electrical system rewired, you need to tell your insurer, as rewiring can increase the risk of fire.
Replumbing
Replumbing can increase the risk of water damage in the short term.
Having cladding replaced
If you’re having cladding replaced, you need to tell your insurer so they can reassess the risks for your home. This is because cladding can help to protect your home from weather damage.
Read about how to prevent common weather damage to your home.
Roof replacements
Buildings insurance can cover roof damage, provided your roof is in a good state of repair and looked after with regular maintenance.[i] However, if you’re replacing it because it’s sagging or leaking, you should inform your insurer, as there’s a risk of water damage during the work. Also, the HOA advises that any work to replace or repair more than 25% of your roof requires building control approval.5
Installing double glazing
On the plus side, many insurers view double glazing as an energy-efficiency improvement and as reducing risk due to the added security it offers. You’ll need to inform your insurer that you’re installing it, as changes such as replacing windows or installing double glazing may affect rebuild costs or risk assessments.
Garden renovations
Your buildings insurance may cover garages, greenhouses and garden sheds. However, garden cover varies by policy, so you should check that your garden is covered before you renovate it.
The following garden renovations could change what needs to be insured:
- Installing features such as decking may be classed by your insurer as a major cosmetic renovation that significantly changes your home’s appearance.
- Significant changes to in the garden may require planning permission or building control approval, depending on the scale of the work and its impact on drainage or neighbouring properties.7 Subsidence is another possibiulity.8 Both may affect your insurer’s assessment, so it’s a good idea to let them know if significant work is taking place.
- Erecting sheds, outhouses, large storage units or pergolas. The Association of British Insurers (ABI) says that adding permanent structures could change what needs to be insured.9
- Replacing or removing grass or turf can increase flood risk, but outdoor spaces can also be designed to mitigate it. As changes like this can affect your risk profile, you may need to inform your insurer depending on the scale of the work and your policy.10
Solar panels
More than 1.5 million homes in the UK have solar panels installed,10 and the government wants an extra 3 million rooftop solar panels installed by 2030.11
If you’re keen to add solar panels to your roof, ask your insurance company for advice, as the installation could alter your home’s structure and may involve systems that may not be covered.
The Energy Savings Trust recommends asking what your insurance covers in the event of damage caused during installation. If you’re buying a home with solar already installed, you’ll need to add it to your insurance quote.12
Why do you need to tell your insurer about home renovations?
Here’s why you should tell your insurer about home renovations:
- Any work that increases the cost of rebuilding your home, such as adding a new bathroom or bedroom, can affect your insurance if something goes wrong. It’s important to let your insurer know about any renovations that could raise your rebuild cost, as your cover and premiums are based on how much it would cost to rebuild your home.
- It’s essential to check that the work you’re doing won’t invalidate your insurance. For example, a DIY job that goes wrong may result in a claim being rejected.13 You also need to have sufficient home insurance cover in place, so you’re not over or underinsured.
- Another reason to inform your insurer is that your home may be more vulnerable to damage or theft14 while work is under way and they may need to adjust your policy. Most home insurance policies exclude accidental damage arising from building alterations, renovations, extensions or repairs.
When don’t I need to tell my insurer about home renovations?
There are a few cases where you may not need to tell your insurer about a renovation. These include:
Cosmetic renovations
If you're just making cosmetic changes to your home, such as painting the walls or replacing the flooring, you typically don’t need to tell your insurer. However, it's always best to check with them first to be sure.
Minor repairs
If you're making minor repairs to your home, such as fixing a leaky tap or replacing a broken window, you may not need to tell your insurer. However, if the repair is extensive or could affect the structure of your home, it’s best to give them a call.
At what point should i tell my insurer i'm renovating?
It’s important to tell your insurer about any renovations before you actually start work.
If you need to move out of your home while home renovations are being done, you may need to ask your insurer about unoccupied insurance. If you’re leaving the property for an extended period, your policy may have further cover restrictions or you may need to arrange alternative cover.
By telling your insurer about your renovations, you can help to ensure that you're properly covered in case something happens.
How to tell your insurer about home renovations
The best way to tell your insurer about home renovations is to contact them directly, or through your broker. They’ll likely ask you some questions about the renovation, such as the type of work you’re having done, the estimated cost, and when it will be completed. They may also ask for evidence that any contractors you use have the right licenses and insurance to carry out the job. Your insurer will also check that no Joint Contracts Tribunal (JCT) contract has been entered into, as this means the insurer would have no recourse against the contractor in the event of a claim being made.
If you’re an Ageas’ customer, we have a series of questions our team will take you through, including who’s carrying out the work, what is being done and whether the property will be left unoccupied. We’ll typically then be able to tell you immediately how your policy will be affected. Easy.
Learn more: What affects the cost of your home insurance?
What questions will my insurer ask about my home renovation?
- How long the work will take.
- When it is due to start and finish.
- How much the project will cost.
- Whether you will be staying at the home or moving out.
- What work is being done.
- Which builder or building company are you using, and do they have their own liability insurance?
What happens if I don’t tell my insurer about my home renovation?
It's important to remember that your insurer is there to protect you in case something happens to your home. If you don't tell them about your renovations, you could be putting yourself and your home at risk.
If you don't tell your insurer about your home renovations, there are a few things that could happen:
- Your claim could be denied. If you file a claim for damage to your home that was caused by a renovation you didn't tell your insurer about, they may deny your claim.
- Your policy could be declared void. If you don't tell your insurer about renovations, they may declare your policy void from its start date or the date that building work started. This means that you won't be covered by insurance if something happens to your home.
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What insurance may you need when renovating your home?
You may want to consider getting the following types of insurance before, during and after your renovation:
- Contents insurance helps protect any belongings you could take with you, like jewellery and mobile devices.
- Accidental damage insurance – provides cover for DIY mishaps, such as putting a nail through a hot water pipe.
- Legal expenses insurance – covers incidents like disputes with tradesmen over an unsatisfactory installation.
Get a quick home insurance quote.
FAQs
Are accidents related to home renovations covered by home insurance?
- Accidental damage from buildings alterations, renovations, extensions or repairs are unlikely to be covered by your home insurance unless you have accidental damage cover.15You can see if you have it by checking your policy details.
- To cover your own DIY projects, you may need accidental damage cover, which is usually an optional add-on.
- Accidental damage includes accidents like knocking red wine onto a carpet, breaking a window or glass hob, or putting your foot through the ceiling.
- Generally, home insurance won’t cover you for carrying out work that you’re not qualified to do, like plumbing or electrical repairs. For example, Ageas accidental damage cover does not cover rain or water damage caused by poor workmanship or bad design. Always check your policy.
What should you do if there are renovations happening while you et a home isnurance quote?
You should tell your insurer about any renovations before they happen.15 If they are already happening when you get a home insurance quote, you should also inform them. They will help you put in place any extra cover you may require.15
Will renovations increase the cost of your home insurance?
Yes, renovations can increase the cost of your home insurance as it will typically drive up the rebuild cost of your home, meaning the amount of cover you need also rises.
Informing your insurance company is recommended as otherwise you may be underinsured if you need to claim. It’s a good idea to compare quotes to ensure adequate protection.15
Sources
[2] https://hoa.org.uk/advice/guides-for-homeowners/i-am-improving/loft-conversion-where-do-i-start/
[3] https://hoa.org.uk/advice/guides-for-homeowners/i-am-improving/garage-conversion-where-do-i-start/
[5] https://hoa.org.uk/advice/guides-for-homeowners/for-owners/does-my-roof-need-replacing/
[7] https://www.landscaper.org.uk/landscaping-guidance/do-i-need-planning-permission-for-a-new-garden
[8] https://www.abi.org.uk/products-and-issues/choosing-the-right-insurance/home-insurance/subsidence/
[11] https://www.gov.uk/government/publications/warm-homes-plan/warm-homes-plan-html
[13] https://www.moneysupermarket.com/home-insurance/invalidation/
[14] https://www.moneysupermarket.com/home-insurance/renovation/
[15] https://www.theloftbuildcompany.co.uk/post/loft-conversion-insurance
