Undertaking a home renovation, extension, or loft conversion is an exciting way to transform your living space. However, construction work carries inherent risks—from accidental damage to your neighbor's wall to structural collapses or site injuries.
Many homeowners assume that their standard buildings insurance or their builder's commercial policy covers any mishap. Relying on this assumption without verifying details can lead to insurance policies being invalidated and leave you exposed to devastating repair bills. In this advice guide, we explain the types of builders insurance, what you must verify, and how to protect your home.
1. What insurance must your builder carry?
Before you allow any tradesperson to start work on your property, you must request proof of their commercial insurance policies. Look for these two coverages:
- Public Liability Insurance (PLI): This is the most critical insurance for builders. It covers the cost of claims if a third party is injured on-site or if your property (or your neighbor's property) is damaged due to the construction work. Reputable builders should carry a minimum of £2 million, and ideally £5 million, in Public Liability coverage.
- Employers' Liability Insurance (ELI): If your builder employs staff or sub-contractors on-site, this is a legal requirement in the UK. It covers claims if a worker is injured or falls ill while working on your project.
2. Why you must notify your home insurance provider
Standard home insurance policies are written on the basis of a standard, occupied home. They do not cover properties that are actively undergoing construction, structural alterations, or left unoccupied during works.
- You must notify your insurer in writing before any construction begins, detailing the project scope, duration, and contract value.
- Consequences of non-disclosure: If you do not notify your insurer and a fire, water leak, or theft occurs during the build, your insurer can legally void your entire policy, leaving you with zero coverage for both the renovation and the existing house.
- Renovation Insurance / Contract Works Insurance: Your existing insurer may agree to cover the works for an additional premium. If they refuse, you should buy specialist Renovation Insurance. This covers the existing house structure, the new works in progress (protecting materials like timber or steel on-site), and tools from theft or storm damage.
3. Structural warranties for major builds
If you are building a brand new house or a substantial extension, you should consider a structural warranty:
- What it covers: Unlike standard insurance, a structural warranty (offered by providers like NHBC, LABC, or Premier Guarantee) protects against defects in design, materials, or workmanship in the structural load-bearing elements of the build for up to 10 years.
- Mortgage Lenders: If you plan to sell the property or refinance it in the future, most UK mortgage lenders will not lend on a newly constructed property or major extension unless a valid structural warranty is in place.
4. Vetting checklist: Vetting your builder's insurance
To ensure you are fully protected during your renovation, follow this checklist:
- Do not accept verbal confirmations: Ask the builder for their insurance certificate. Verify the policyholder's name, the insurer, the coverage limits, and the policy expiration date.
- Check sub-contractor coverage: Ask if the builder's policy covers sub-contractors. If not, each sub-contractor (plumber, electrician) must provide their own Public Liability certificate.
- Use a formal contract: Legally binding contracts (such as JCT Homeowner contracts) explicitly state who is responsible for insuring the existing structure and the new works, preventing disputes if issues arise.
Find insured and vetted builders on GetBuilder
Connecting with fully insured builders is simpler with GetBuilder. We vet profiles to ensure peace of mind:
- Post your renovation requirements: Outline your project plans and timeline for free on GetBuilder.
- Verify builder insurance: Every builder profile on GetBuilder indicates their insurance status, letting you review checked credentials easily.
- Safe hiring and contracts: Compare detailed written quotes, view checked previous reviews, and hire safely using standard, milestone-linked payments.
