Home insurance and building work problem

Bartoni79

Hi,

I wonder if someone might be able to shed some light on an insurance issue vs building work issue.

I informed my insurance company that I’m having building work done and they said that its unlikely the underwriter will accept it and advised me to cancel my policy and find another one.

So I’ve used comparethemarket and found policies (building and contents) but theyre £1000 and some of those don’t cover any damage during building works. Valuables are in storage so the contents aspect isn’t really relevant. So my question(s) is

1)      In this instance, what’s the purpose of me finding another policy if the insurance companies wont pay for any damage and Im paying £1000 a year?

a.       Isn’t the builder liable for any damages anyway?

2)      Is building insurance mandatory? Can I just renew after the building work is completed and hope that nothing happens in the next 3 months build process?

Thanks

DullGreyGuy

1a) Yes, which is why the policy excludes it

2) No legal requirement for buildings/contents/home insurance however if you have a mortgage its almost certainl you have a contractual obligation to have insurance else your home burns down and you walk away from your debt and the bank repossesses a pile of burnt bricks. 

Bartoni79

Hi,

So to summarise I have a mortgage so I need building insurance. 
- If the builder causes a wall to fall down, he has to pay for it?
- If a tree falls on the house/ a hurricane takes the roof off, this is where my building insurance comes in?

If this is the case, why are insurers giving me crazy premiums for having building work done?. If a builder will pay for any damages and takes the liability of any building related damages during building work, arent they removing any additional risk for the insurance company whilst the renovations are being done?
I also struggle to see how they can charge 60% more than my current policy (or not continue with my policy) whilst building work is taking place? Is my understanding correct. Ive not had major building work done so I might be missing something obvious

Thanks

DullGreyGuy

1) its a niche product with limited providers offering it and so much less pressure on pricing 

2) tends to be a one off purchase... cant rely on next years renewal premium to cover the cost of acquisition so all have to be covered by year 1 premiums

3) there is more chance of disputes to occur... was the escape of water just bad luck that a joint failed or was it become some bloke with a powertool was taking a wall down a foot away?