Insurance During a Home Renovation

A home renovation is one of the largest investments a household makes after the original purchase. Whether it is a full flat renovation, a kitchen remodel, or an extension project, the process introduces a specific set of risks that most standard home insurance policies are not automatically equipped to handle. Understanding the gaps — and filling them before work begins — protects both the investment and the people involved.

Does Your Standard Home Insurance Cover Renovation Damage?

Standard home insurance typically covers the completed structure against fire, flood, burglary, and similar named perils. During renovation, the risk profile changes: walls are open, materials are stored on-site, contractors are moving in and out, and the structure itself may be partially incomplete. Several insurers restrict or exclude claims that arise while the property is under active renovation. Before work begins, call your insurer and ask explicitly: "Is the property covered during the renovation period?" Get the answer in writing or email.

Contractor''s All-Risk (CAR) Insurance

A Contractor's All-Risk policy is designed for exactly this situation. It covers:

• Materials and equipment on-site against theft, fire, or accidental damage.
• Damage to the existing structure caused by the renovation work.
• Third-party liability if a contractor or construction activity causes injury or property damage to a neighbour or third party.

Large general contractors typically carry their own CAR policy. If you are managing a renovation with multiple small contractors, it is worth asking whether any of them carry coverage — and purchasing a project-specific policy for the ones who do not.

Workmen''s Compensation: Your Liability as a Client

Under the Employees' Compensation Act, an employer — or, in some interpretations, a client who exercises operational control over labourers — can be liable for injury to construction workers on-site. If an uninsured labourer falls from a scaffold in your flat during renovation, the legal and financial liability can fall on you. A Workmen's Compensation (WC) policy purchased for the renovation project covers this liability. It is generally inexpensive relative to the risk and covers medical costs and compensation for the injured worker.

Storing Your Belongings During Renovation

During a major renovation, furniture, electronics, and valuables are often moved to storage — sometimes a rented unit, a family member's home, or another room. Your standard home contents policy covers belongings at the insured address. Items in temporary storage elsewhere may not be covered. If significant valuables are being relocated, confirm coverage or arrange a short-term storage insurance extension.

Post-Renovation: Update the Sum Insured

After the renovation, the value of the property — structure and contents — has almost certainly increased. A kitchen renovation with imported fittings and a home theatre installation both increase replacement costs. Update your home insurance sum insured to reflect the post-renovation value within 30 days of completion. Failing to do so means you are effectively underinsured from the moment the work is done.

Conclusion

Renovation is a high-value, high-risk period for a home. A few proactive insurance steps — confirming existing cover, arranging a CAR or WC policy, and updating the sum insured post-completion — add minimal cost and substantial protection. Speak with an advisor on TruePolicy to identify exactly what your current home policy does and does not cover during a renovation, and fill the gaps before work begins.