Home Insurance During Renovation in London: What You Need to Know

Insurance is one of the most overlooked aspects of planning a London renovation. Clients focus on design, planning, and contractor selection — which is correct — but frequently reach practical completion without having addressed the insurance position properly. This can have serious consequences.

Why standard home insurance is inadequate during renovation

A standard home buildings and contents policy is written on the assumption that the property is occupied and in its normal condition. When a renovation begins, several of the assumptions underlying that policy change:

• —Unoccupied periods: many London renovation projects involve the client vacating the property for months. Most standard policies void or significantly restrict cover after 30–60 days of unoccupancy.
• —Structural works: cutting through external walls, removing roofs temporarily, underpinning, and opening up floors all create risks that a standard policy does not price or cover.
• —Increased theft risk: an open site with building materials, plant, and unoccupied premises is a significantly higher theft risk than a lived-in home.
• —Contractor liability: a standard home policy does not cover employer's liability or public liability for contractors working on the property. It assumes a domestic, non-commercial environment.
• —Increased rebuild value: mid-renovation, the rebuild cost of the property may be inflated by partially completed works, temporary structures, and materials on site that are not covered under a standard sum insured.

The risks of not notifying your insurer

Standard home insurance policies require you to notify your insurer of any material change in circumstances. A major renovation is almost always a material change. Failure to notify can result in:

• —Policy voided ab initio — the insurer may treat the policy as if it never existed if the non-disclosure is material, leaving you with no cover for any claim.
• —Claim rejected — even if the policy is not voided, claims arising from the renovation context may be rejected for non-disclosure.
• —Contested liability — where a third party (a neighbour, a passer-by) suffers loss due to the works, disputed liability in the absence of proper cover creates significant personal exposure.

What cover is actually required

For a significant London renovation, the insurance requirements span several distinct products:

Site / contract works insurance

Covers the works themselves — the materials, the partially completed building, and the existing structure — against fire, storm, flood, theft, and accidental damage during the construction period. This is typically arranged by the contractor as part of a JCT or similar construction contract, but the client should confirm that the policy is in place and that the cover level is adequate. Ask to see the certificate.

Contractor's public liability insurance

Covers the contractor's liability for injury to third parties (members of the public, neighbours) and damage to third-party property caused by the works. A minimum of £5 million public liability is standard for residential renovation works in London. £10 million is appropriate for basement works, significant structural works, or projects in dense urban settings where party wall and adjacent property risk is elevated. Again: ask to see the certificate.

Employer's liability insurance

If the contractor employs staff directly (rather than operating entirely through subcontractors), employer's liability insurance is a legal requirement. It covers injury to employees during the works. Any JCT-compliant contractor will have this in place.

Unoccupied property insurance

If the client vacates the property during the renovation, a standard home policy will not provide adequate cover beyond the unoccupancy period specified in the policy (typically 30–60 days). An unoccupied property insurance policy — available from specialist brokers — provides cover specifically for vacant properties. The premiums are higher than standard home insurance; this is appropriate to the risk.

Reinstatement of existing structure

The client's existing buildings insurance should cover the existing structure (as distinct from the works). During a renovation, the boundary between existing structure and new works can be unclear. Confirm with your insurer how the policy responds to damage to the existing structure caused by the contractor's works, and whether the policy remains in force while works are ongoing.

Who arranges what: contractor versus client

The division of insurance responsibility should be specified in the contract. Under a standard JCT Minor Works contract:

• —The contractor arranges public liability and employer's liability (and typically contract works for the new build element)
• —The client arranges insurance for the existing structure (usually through their existing buildings policy, modified for the renovation period)
• —Either party can arrange contract works insurance for the existing structure during renovation — this should be agreed explicitly and not left as an assumption

For a significant renovation in London, we recommend the client appoints a specialist broker at the start of the project — before works commence. The broker will review the contractor's certificates, confirm the gaps, and arrange cover for the client's side of the picture.

Specialist renovation and high-value property insurers

Standard home insurance is generally inappropriate for prime London properties even outside of renovation — the rebuild values, contents values, and risk profiles of a Kensington townhouse are not what a standard insurer prices for. Specialist insurers and brokers who operate in this space include Hiscox, Chubb, AXA Art, and a range of Lloyd's syndicates. These insurers understand the renovation context and can provide appropriate bespoke cover.

Practical checklist before works start

1. 1.Notify your existing insurer — in writing, describing the scope of works, the expected duration, and whether the property will be unoccupied. Get written confirmation of their position.
2. 2.Review the contractor's insurance certificates — public liability (minimum £5m), employer's liability, and contract works. Check expiry dates.
3. 3.Arrange unoccupied property cover if the property will be vacant for more than 30 days.
4. 4.Confirm reinstatement value is adequate for the expanded scope (including materials on site and partially completed works).
5. 5.Check your contents policy separately — standard contents insurance rarely covers tools, plant, or specialist materials on a building site.

If you are planning a significant renovation and are uncertain about the insurance position, contact us and we can introduce you to brokers with direct experience of London prime residential renovation projects. Related reading: our renovation insurance and structural warranties guide covers structural warranties and latent defects insurance in detail.