home insurance - building work

aoleks

hi. we're starting works on our extension tomorrow. I spoke to my insurance company, they said that if structural works are involved, such as an extension, they can't provide cover and I need to find another provider. I think this is pretty stupid, but nevertheless, this is how things are.

is there anything known about insurers being difficult with insurance because of building a simple rear extension? countless houses have them, they can't all be uninsured.

should I just not inform the insurer? I believe the builder has insurance too, should anything go wrong.

Section62

aoleks said:

hi. we're starting works on our extension tomorrow. I spoke to my insurance company, they said that if structural works are involved, such as an extension, they can't provide cover and I need to find another provider. I think this is pretty stupid, but nevertheless, this is how things are.

is there anything known about insurers being difficult with insurance because of building a simple rear extension? countless houses have them, they can't all be uninsured.

should I just not inform the insurer? I believe the builder has insurance too, should anything go wrong.

Usually, not informing insurers of material facts renders the policy invalid in the event of a claim.  If you've spoken to them already then aren't they already aware?

The builder's insurance normally won't cover the same risks as your household policy - e.g. if you have a break in and your valuable collection of widgets is stolen, then the builder's insurance won't normally cover your loss, unless possibly if they were negligent in some way.

aoleks

1. I mean the new insurance. there are no questions about building works when you sign up, I'm not technically lying about anything.

2. we only have buildings insurance, no contents. I am only concerned with the house falling down when installing RSJs, nothing else is a relevant risk to us, nothing any insurance company would be interested in.

Ebe_Scrooge

aoleks said:

we only have buildings insurance, no contents

Really?  Are you sure it's not a combined "buildings & contents" policy?  Seems like a big risk to be taking (or is it the case that the house is empty at the moment, so no need for contents insurance?)

aoleks said:

I am only concerned with the house falling down when installing RSJs,

This is where it comes down to trusting your builder.  If he's competent, there's no reason that should happen.  But, ask to see his insurance documents (if he's kosher, he should have no problems in letting you see them).  If he is fully insured, including consequential losses to customers, then you should be covered for the scenario you've described.

If you want total peace of mind, you can get specific insurance policies to cover building works, renovations, etc. (which may be important if the house is not being lived in, most ordinary policies have clauses about it being left empty for more than 30 days).

Section62

aoleks said:

1. I mean the new insurance. there are no questions about building works when you sign up, I'm not technically lying about anything.

It isn't just the questions they ask that you have to tell them about.  There will be a clause somewhere saying you have to inform them of any other material facts which may affect the policy.

It isn't about 'lying'.  It is just as important to tell the whole truth.  If you conceal information and go on to make a claim on the poilcy - still without revealing the information - you can get into the territory of insurance fraud.  Which is really bad news.

aoleks said:

2. we only have buildings insurance, no contents. I am only concerned with the house falling down when installing RSJs, nothing else is a relevant risk to us, nothing any insurance company would be interested in.

Fire?

Flood?

Storm damage?

Member of the public falling in a hole the builders have dug?

The builders causing damage to your neighbour's property?

Sandtree

aoleks said:

hi. we're starting works on our extension tomorrow. I spoke to my insurance company, they said that if structural works are involved, such as an extension, they can't provide cover and I need to find another provider. I think this is pretty stupid, but nevertheless, this is how things are.

is there anything known about insurers being difficult with insurance because of building a simple rear extension? countless houses have them, they can't all be uninsured.

should I just not inform the insurer? I believe the builder has insurance too, should anything go wrong.

The uninsured period is only during the building works themselves. After the works are finished the policy can be updated for the new number of bedrooms/rebuild value and continue. The fact that "countless houses have them" doesn't mean they are all uninsured.

If you tell them about it or not makes no difference. Your policy isn't valid during structural works and so by speaking to them you now know that and can act accordingly. Had you not told them the policy still wouldn't have been valid but you'd have been in blissful ignorance of the risk you were running. 

Probably most people dont read their policies and go down the ignorance route but certainly some people get unstuck if you wanted to search the Ombudsman decisions there are a few of declined claims on the grounds of non-declared building works.

aoleks

right, that's helpful. so with that in mind, is there an insurer I should target?

I need someone who can provide me a normal building insurance for the entire year + someone who is ok with us building an extension for 8 weeks and not refusing a claim if it's as a result of the works OR something completely different.

NeverTooLate

If you decide to get renovation insurance you're best off using a broker, it's difficult to find a good deal online. You might only need it for a few months rather than the whole year.

aoleks

no, I want a normal insurer for the year that would accept an extension being built. I guess I'm after a different product, I don't want renovation insurance.