Single Project & Renovation Insurance
Specialist Insurance for single projects or properties undergoing refurbishments.
Quick Summary
- When you need it: Single project and renovation insurance protects homeowners and developers undertaking one-off building works that fall outside the scope of a standard home insurance policy
- What standard policies exclude: Most home insurance policies significantly restrict or exclude cover during substantial renovation, extension, or structural alteration: a separate project policy is required
- What it covers: Cover can include contract works (the works themselves), public liability, employer’s liability for contractors on site, and existing structure cover during the build
- Project duration: Policies run from inception through to practical completion, with the option to convert to a standard buildings policy once works conclude
- Self-build and employer routes: Cover can be arranged whether the client is acting as a self-builder or employing a main contractor, with the policy structure tailored to reflect the contract arrangement
Single project and renovation insurance provides comprehensive cover for property owners, self-builders, and developers carrying out significant building works: from loft conversions and basement excavations to whole-house renovations and new-build projects. It fills the critical gap that standard household and property owners policies leave open the moment construction begins.
Why Your Existing Policy May Not Respond During Renovation
Standard household buildings insurance is written on the assumption that the property is in a normal occupied state. Once significant building works begin, most policies impose serious restrictions. In particular, many policies only cover fire, lightning, explosion, and aircraft impact (FLEA perils) during the construction period, meaning that escape of water, storm damage, flood, theft, accidental damage and subsidence are all excluded for the duration of the works. If a contractor causes a water leak, a storm damages the partially completed roof, or materials are stolen from site, your standard policy may simply not respond. In addition, the contractor carrying out the works holds their own public liability insurance, but that only covers claims made against them. It does not protect the property owner’s financial interest in the structure itself, nor does it provide alternative accommodation costs if the building becomes uninhabitable. A single project renovation policy bridges this gap by providing the property owner with continuous, comprehensive cover throughout the works, regardless of the contractor’s own insurance position.
What Does Single Project Renovation Insurance Cover?
| Cover Section | What It Protects | Daines Kapp Note |
|---|---|---|
| Existing Structure | The building as it exists before and during the works, against all standard perils including flood, storm, escape of water, fire, and accidental damage | Critical: this is the gap a standard policy leaves open the moment works begin |
| Contract Works (New Build / Extension) | Materials on site, the new structure under construction, and temporary works against loss or damage during the build period | Sum insured should reflect the full rebuild cost of new works plus a contingency for material price fluctuation |
| Public Liability | The property owner’s liability to third parties for injury or property damage arising from the construction activities | Particularly important where the property owner is acting as their own principal contractor (self-build) |
| Alternative Accommodation | Reasonable costs of temporary accommodation if the property becomes uninhabitable during the renovation works. | Typically included as standard, relevant where the property will be unoccupied and the insured requires temporary accommodation cover during the works. |
| Non-Negligent Liability | Third-party property damage from vibration, settlement, heave, or removal of support arising from the works, where no negligence is established | Required where the contract specifies JCT 6.5.1 cover: see our non-negligent liability page for full details |
One Policy for the Whole Building Project
Whether the project is a domestic extension or the conversion of a commercial building, the same insurance question arises: who is responsible for insuring the existing structure where applicable, the contract works and the liabilities for the duration of the project. Where there are works to an existing building, the most common contractual arrangement, and one of the options available under the JCT family of contracts, which include a specific insurance option for existing structures, is a single policy arranged by the building owner covering the existing structure as well as the building works, in joint names with the contractor. The same facility can also cover projects where there is no existing structure at all, for instance a new build in isolation or as part of a wider development, where the policy simply insures the contract works and the legal liabilities. We would always recommend a careful review of the contractual clauses, which typically stipulate which party is responsible for insuring which portion of the works, when arranging the corresponding insurance policies, and we are able to support with this review. Our article on who insures the building during the works sets out the most common arrangements for insuring buildings undergoing works.
Some projects add complications of their own. Listed buildings carry reinstatement costs and consent requirements. Timing matters for empty properties: most renovation policies require the works to commence within a set period of the policy starting, so a property standing empty before the works begin may need unoccupied buildings insurance for the interim, and many policies also provide that if the works cease for more than a set period, commonly sixty days, the renovation cover ends and unoccupied buildings insurance is required until the works resume. And where excavation, underpinning or demolition happens close to neighbouring property, non-negligent liability cover is a highly recommended cover worth further discussion. We arrange building project insurance across all of these situations, for homeowners, self-builders and developers.
Who Needs Single Project Renovation Insurance?
This cover is appropriate for any property owner whose existing buildings insurance will be materially restricted by the scope of the proposed works. This includes homeowners carrying out loft conversions, extensions, basement excavations, or whole-house refurbishments; self-builders constructing a new home on a plot they own; developers converting commercial buildings to residential use; and buy-to-let landlords undertaking major renovation between tenancies. It is also suitable for properties being purchased specifically for renovation, where the standard policy will not provide adequate protection from the moment of completion. The policy is structured as a project-specific cover, with a defined commencement date and a build period. Once the works are complete and the building is back to its intended occupancy, the renovation policy is replaced by a standard household or property owners policy.
Why Choose Daines Kapp for Renovation Insurance?
The risks arising from renovation and self-build projects are significantly more complex than those of a standard occupied property. The contractor’s own insurance programme covers their liability, but it does not protect the property owner’s asset. We review the scope of works, the contract documentation, and the property’s existing insurer’s position before placing cover, ensuring that there are no overlaps, gaps, or contractual obligations left unmet. Where the project involves significant groundworks, piling, or demolition adjacent to neighbouring properties, we can arrange non-negligent liability (JCT 6.5.1) cover as an integral part of the renovation programme. Our in-house claims team is available throughout the project if an incident occurs.
Get a Renovation Insurance Quote →
Frequently Asked Questions About Renovation Insurance
Does my existing home insurance cover me during a renovation?
Usually not in full. Most standard household policies restrict cover to FLEA perils (fire, lightning, explosion, and aircraft impact) once significant building works begin. This means escape of water, storm, flood, theft, and accidental damage are excluded for the duration of the works. Some insurers will void the policy entirely if notified of structural works. You should always notify your existing insurer before works begin and obtain confirmation of the cover position in writing. If your existing cover is restricted, a single project renovation policy ensures you have comprehensive protection throughout the build period.
Why should I not rely on my contractor’s insurance alongside my existing home insurance?
Many property owners assume that their contractor’s public liability insurance, combined with their existing home insurance, provides adequate cover throughout a renovation. In practice, claims can fall between the two policies, leaving the property owner exposed. The contractor’s policy, where it includes contract works cover, will respond to damage to the works themselves. However, if the existing structure is damaged, their public liability policy will only respond if the contractor has been negligent. Establishing negligence is not always straightforward. At the same time, your existing insurer, upon being notified that major works are taking place, may agree to maintain cover but seek to exclude damage caused by the contractor. This creates a scenario where, if a claim arises, the proximate cause is disputed. Consider an internal renovation that included a full rewire and new plumbing. A fire occurs overnight and it is unclear whether it was caused by the newly installed electrical system. The contractor’s public liability insurer may decline the claim for damage to the existing structure, stating that negligence has not been proven. The property owner’s insurer may simultaneously exclude the claim on the grounds that they believe it was caused by the contractor, relying on the contractors exclusion within the policy. A single project renovation policy resolves this by placing cover for both the works and the existing structure with one insurer, eliminating the risk of a claim falling between two separate policies.
What is the difference between contract works insurance and renovation insurance?
Contract works insurance (also called contractors all risks) covers the physical works under construction: materials, the partially completed structure and temporary works, from the contractor’s perspective. Renovation insurance is a broader policy arranged by the property owner that covers the existing structure, the new works, public liability, alternative accommodation, and optionally non-negligent liability and employers’ liability, all under a single project-specific programme. Both the contractor and the property owner may need their own insurance arrangements: the contractor’s policy protects the contractor; the renovation policy protects the property owner’s asset and financial interest.
Do I need renovation insurance for a loft conversion?
It depends on the scope of the works and the terms of your existing household policy. For a straightforward loft conversion by an established contractor, your existing insurer may agree to extend cover with minimal restriction. However, for more complex structural works, such as raising the roof line, adding a dormer or installing steel beams, many insurers will impose FLEA restrictions for the duration of the works. We review the specific scope with you and advise on whether a standalone project policy provides materially better cover than relying on an extended household policy.
Can I get renovation insurance for a property I am purchasing to renovate?
Yes. We can arrange renovation cover to commence from exchange of contracts where the risk passes to you at that point, or otherwise from legal completion, ensuring the property is covered from the outset. This is particularly important when purchasing a derelict or uninhabitable property, as standard household insurers will often decline to quote on properties in poor condition. A renovation policy provides full perils cover from the day the risk becomes yours, transitioning to a permanent policy once the works are complete and the property achieves its intended standard of occupation. It is important to note that works should typically commence within the first 60 days of inception. Where works are not yet ready to begin, an unoccupied property policy would usually be needed for the interim period, with the renovation policy being arranged only once the works are ready to commence. Our article on buying a property to renovate walks through the sequence from exchange to completion of the works.
How long does a single project renovation policy last?
Project policies can run for less than a year. The policy is structured around your anticipated build programme and can be arranged for as little as three months or for as long as thirty-six months, with an agreed start date and a projected completion date matched to the expected duration of the works. If the works overrun, the policy can usually be extended for a pro-rata additional premium plus an insurer administration fee, so that cover remains continuous. It is important to notify us if the scope of works changes materially during the project, as the risk profile and the sum insured may need to be revised. We manage this process actively throughout the project rather than simply at renewal.
Is non-negligent liability included in renovation insurance?
Non-negligent liability is typically an optional extension to the renovation policy rather than a standard inclusion. In order for insurers to quote for this extension, some additional information is required: this is provided via a short proposal form. For projects involving basement excavations, piling, demolition, or any work adjacent to a party wall or shared foundations, we recommend discussing this extension at the time of arranging the main policy.
