Buildings Insurance while doing an Extension

paullong

Hi
We have a major extension starting next week and so I did the right thing and informed my insurance company (Hastings Direct) and they told me they could no longer insure our building during the work. They have a threshold of £50,000 for any extension work and if it's more than that, then they won't cover even the existing building during the works. I've spent most of the day searching online and ringing around other insurance companies and I'm not finding anywhere that will insure the building for a decent price. One company called "Renovation Plan" specialises in this type of insurance but they want over £600.

Has anybody had experience of doing this before and know of insurance companies that will cover this additional 'risk'? I put 'risk' in apostrophes because the builder has liability insurance so I don't see what the additional 'risk' is to my insurance company.

I'm also having to battle with deciding whether to move contents insurance as well as buildings insurance. Hastings have said that they will waive the cancellation charge because it is them that are imposing the restriction and will refund on a pro-rata basis but they won't refund the legal cover and key cover because these are non-refundable, even though I'm only just over a month into the policy.

Thanks, Paul

dacouch

The incidence of claims greatly increases when major structural works are being carried out and the type of claims tend to be for very big claims eg large fires or water damage as well as large theft claims.

The builders Liability Cover will not necessarily cover all damage they do so don't rely on it.

Is the building work being carried out under a JCT contract?

paullong

There's no JCT contract.

dacouch

That's unusual for a large contract.

Does the contractor have a Contractors All Risk Policy and if so how much does it cover for contract works?

paullong

I've got a copy of their liability insurance.

dacouch

paullong wrote: »

I've got a copy of their liability insurance.

Liability will cover them if say one of their plumbers sets fire to your loft while soldering a pipe.

Although many Liability Policies will not cover them for the higher risk tradesmen such as roofers and plumbers. It will depend on the type of policy.

If they did not have cover, the plumber / roofer may have their own cover (They may not) and it may cover the damage but it would depend on the contract between the plumber / roofer and the main contractor whether it would pay out.

Contractors All Risk would cover the new build work they have done before they hand it over to you. For instance if there's a big storm and it blows down or a fire that is not their fault.

If they don't have C.A.R and there's a problem you may be left up the swanny if something happens and they have no cover.

If it's a large job C.A.R is sensible to have as well as having a decent contract which outlines whose responsibilities things are.

Can you see why Insurers are not keen on large extensions with the increased potential for large claims and minefield of whether it's the contractors problem or your / your Insurers problems

paullong

Hi
Thanks for all this information. Very useful. Yes - I can see the risks. I've managed to secure a policy through "One Call" who have been absolutely excellent. They've put some exclusions but it's £377 instead of over £600. I was previously paying less than £200 but am happy to pay the extra for this year.
Thanks, Paul

dacouch

Ask to see the builders liability insurance and make a note of the Insurers name and policy number.

It can be very difficult to obtain these if there's a problem and your relationship with the builder fails

paullong

Already got :-)

rs65

paullong wrote: »

Already got :-)

What about CAR and non-negligence (if applicable) ?

Do you have any contract?

paullong

We have our own version of a contract, not JCT though. CAR all sorted. OneCall gave me the B&C insurance I needed today so I'm happy that is sorted out at least. Very sensible insurance company with a good approach to business from what I can see.