20 January 2026
Buying a property to renovate? Don’t overlook the hidden risks
1 minute
Transforming a period property or breathing new life into a new home is an exciting journey. But before the dust sheets go down and the architect’s plans come to life, there’s one detail that can make or break your project: insurance.
Renovation isn’t just about design and craftsmanship, it’s about protecting your investment. Standard home policies rarely cover major works, and gaps in cover can leave you exposed to significant financial risk. Here’s what you need to know.
Insurance Essentials
When major building works begin, your home becomes a construction site. If disaster strikes mid-project e.g. fire, flood, or structural collapse, you could lose both the original property, and everything built so far. Most home insurers won’t cover this once works start.
Building contracts often require “joint names” insurance with your contractor, which standard insurers rarely accept. And even if your current policy hasn’t been cancelled, don’t assume it covers the value of the works or complies with contract terms.
Liability is another hidden risk. If your renovation causes damage to neighbouring properties - even without negligence - you could be legally responsible under the Party Wall Act. Specialist cover for non-negligent liability is essential for projects involving basements, underpinning, or structural changes.
For high-value or listed homes, a bespoke renovation policy is often required – covering the existing structure, works in progress and liability. The safest approach? Speak to an expert before you start.
Behind the scenes: A Grade I Listed Restoration
When one of our clients set their sights on a stunning Grade I listed property, their vision was clear: restore its grandeur, bring it up to modern standards, and preserve every ounce of its heritage. But behind the beauty of this ambitious project lay a web of insurance challenges.
- Stage 1: Securing the purchase
Before a brick was touched, the property needed cover as an unoccupied home. We arranged a specialist policy that allowed the sale to proceed and reinstated critical protection like subsidence cover. To mitigate risk - particularly water damage - we implemented a strict inspection schedule.
- Stage 2: Covering complex works
Once planning permission was granted, the project moved into full restoration mode. With works exceeding half a million and a JCT contract in place, the owners were responsible for insuring both the existing structure and the works in progress, jointly with the contractor - a condition most standard insurers won’t accept. We transitioned the policy to a JCT-compliant renovation policy, ensuring seamless protection for every stage of the build.
- Stage 3: Looking ahead
When the dust settles and the property is reborn, we’ll move the clients onto a bespoke high-value household policy. From acquisition to completion, our role is to eliminate gaps in cover and safeguard their investment - because restoring history deserves nothing less than meticulous protection.
Planning a renovation? Protect your dream home from day one. Speak to Private Client specialist George Seatter on 07500 032045 or email privateclients@howdeninsurance.co.uk
George Seatter
“Every renovation is unique, but one thing never changes: the importance of getting the insurance right from day one. My role is to make sure our clients can focus on the excitement of the build, knowing their project is fully protected at every stage.”