This article has been written by SRG’s Private Client Team, in collaboration with Natalia Wood, Head of Broker and Professions CPD at Renovation Underwriting.
For many homeowners, a renovation is one of the most significant investments they will make in their property. Increasingly, we are seeing clients choose to upgrade their existing homes rather than move.
For private clients undertaking complex renovations, insurance should be considered alongside legal, design and project planning decisions, not after them. Ensuring your cover keeps pace with the project from day one is a small step that can make a substantial difference.
Renovating a home is exciting, but from an insurance perspective, it is also one of the points at which a property is most exposed. Once works begin, the assumptions underpinning a standard home insurance policy can change quickly. Structural alterations, partial strip-out, contractor activity, weather and evolving site conditions can all create gaps that existing buildings and contents cover was never designed to handle.
This is why renovation insurance should form part of early project planning, ideally before the tender is agreed and contracts are signed. The earlier it is considered, the easier it is to align contract clauses, responsibilities and cover in a way that properly protects the property owner.
One of the most common misunderstandings in renovation projects is assuming that the primary exposure sits only within the new work being carried out. In reality, contract works insurance can extend much further, protecting the works, the existing structure, property owner’s liability and, depending on the arrangement, wider liabilities connected to the project.
This matters because losses do not always fall neatly into one category. Theft, water damage or accidental damage caused during the works can create uncertainty if cover is split across multiple policies. In our experience, a more joined-up approach can help reduce the risk of gaps in cover and minimise the likelihood of disputes between insurers.
When renovation works are being planned, the contract is one of the most important elements to get right. The Joint Contracts Tribunal (JCT) produces widely used contracts that clarify how works are to be delivered and include joint names insurance provisions that many standard home insurance policies are not designed to accommodate. This is why specialist renovation insurance is often required to align properly with the contract.
JCT contracts set out the responsibilities of all parties involved, including what work is to be carried out, by whom, over what timeframe and at what cost. Just as importantly, they provide a structured framework for resolving issues, helping to minimise delays, disputes or escalation where challenges arise during the project.
For clients, it is essential that the contract and insurance arrangements work together seamlessly. Under a JCT contract, responsibility for arranging insurance can sit with either the contractor or the property owner. While both approaches are valid, the implications can differ significantly in practice.
In our experience, relying on contractor-arranged insurance can introduce additional complexity. Liability is not always straightforward to establish, and if issues arise with the contractor, such as insolvency, delays or disputes, this can impact both the project and the insurance response. There is also a reliance on the contractor maintaining and complying with their policy terms throughout the works.
For this reason, many property owners choose to retain control of the insurance themselves. An owner-controlled, JCT-compliant policy can provide greater oversight of cover, clearer understanding of policy terms and more certainty around how claims will be handled. It can also help avoid the need to navigate multiple insurers in the event of contractor-related damage, supporting a more straightforward path to resolution.
While this approach can provide greater oversight in many cases, the appropriate structure will depend on the specific project, contractual arrangements and professional advice received.
Contents are another area where homeowners can easily be caught out. Existing home insurance may restrict or exclude cover once renovation works begin, particularly if items are being moved, stored or left in parts of the property affected by the works.
That is why contents cover should be reviewed in advance. Where items remain on site, the scope of cover, inner limits and exclusions should be checked carefully. If furniture, personal possessions or valuables are being moved off site, it should not be assumed that they remain insured under a renovation policy. Early conversations and clear advice can help ensure there are no unexpected gaps.
Renovation works can change a property’s risk profile from one day to the next. Insurers will look closely at how risks are being managed as site conditions evolve, particularly where fire, theft or water damage exposures increase.
This makes active risk management especially important throughout the project. Depending on the nature of the works, this may include temporary weatherproofing, draining systems during periods of inactivity or introducing a water management plan where exposure increases. In our experience, the more significant the project, the more important it becomes to treat risk management as an ongoing process rather than a one-off consideration at the outset.
The safest approach is to think in terms of one joined-up strategy rather than separate aspects of cover. In our experience, key considerations often include:
Speaking to your broker before the tender is agreed and contracts are signed
Considering whether a JCT contract and an owner-controlled insurance option may be appropriate for the project
Ensuring the contract and insurance arrangements are aligned
Assessing whether a JCT-compliant owner-controlled insurance policy is suitable and what is needed to keep cover in place throughout the works
Reviewing contents cover carefully, especially if anything is being removed or stored elsewhere
Treating site risk management as an ongoing priority throughout the project
In our experience advising private clients, renovation insurance is often treated as an afterthought, only becoming a focus once work is underway. By that stage, options can be more limited and issues more difficult to resolve.
Most projects evolve over time. Timelines extend, costs change and risks shift, particularly in complex or high-value homes. Early, well-informed decisions around insurance can help avoid unnecessary disruption later on.
If you are planning a renovation, an early conversation can help ensure your contract, insurance and risk management approach are properly aligned from the outset, supporting a smoother and more confident project overall.