Insurance for Major Renovations: Navigating Complexity with Expertise

When clients embark on large-scale renovations, insurance becomes more than a formality - it’s a vital protection for their investment. Standard home insurance often won’t cover major building works, and breaching the policy’s building works condition can leave you uninsured. Specialist renovation insurance is designed to protect the existing structure, works in progress, and liability risks. This case study highlights how Howden helped a client overcome insurance challenges during a multi-million-pound property transformation.

The project

The client purchased a property with plans for a complete renovation and remodel. The figures were significant:

• Existing structure reinstatement value: £3.5m
• Planned works cost: £3.5m

The property would ultimately become a main residence. However, the situation was complex: the vendor was remaining in the property for a short period, and a housekeeper would continue to live in the annexe until works commenced.

Initial cover

We arranged a policy that provided flexibility for the client’s circumstances, ensuring the new property was protected alongside contents cover for his existing home. This initial solution gave the client peace of mind while plans for the renovation progressed.

The works

The project included:

• Main house: Loft conversion replaced with a new floor featuring two bedrooms, two ensuites, and storage under a steel-framed flat roof.
• Annexe: A brick-built structure 50+ metres from the main house, used as a site office, also scheduled for renovation (subject to separate planning approval).

The complication

Some months later, it was time to add works cover to the existing policy. However, the client faced a common challenge: plans had evolved, and some details were still awaiting planning consent. A full schedule of works couldn’t be provided, yet site clearance and demolition had already begun - creating urgency for cover without finalised details.

The insurer took a firm stance, either provide a complete schedule of works or remove the property from cover entirely. This presented a significant risk to the client, as the works were already underway and leaving the property uninsured was not an option.

The solution

Leveraging our network and relationships, we sourced an insurer that could accommodate the complexity and provide a solution based on the available information:

• Existing structure value: £1m (adjusted for retained elements)
• Works value: £3.5m

This new policy ensured continuous protection as works progressed. The client’s content insurance for their other property remained in place.

Key Takeaway

Large-scale renovations often involve evolving plans and changing insurance requirements. Early engagement with Howden ensures flexibility and continuity, even when challenges arise. Our expertise and market access mean your project can be protected from day one.