So what is property renovation underwriting?
Underwriting in the context of property renovation involves assessing the risk associated with insuring a property undergoing significant changes. Unlike standard home insurance, which covers completed structures, renovation insurance needs to account for the unique risks that arise during construction, such as structural damage, theft of materials, and accidents.
The underwriting process typically includes:
– Assessment of Project Scope: Evaluating the extent of renovations and the associated risks.
– Contractor Evaluation: Ensuring that licensed and experienced contractors are employed.
– Site Visits: Periodic inspections to monitor progress and adherence to safety standards.
– Risk Mitigation Plans: Implementing measures to reduce the likelihood of damage or loss.
At this point you might be questioning “do I really need extra insurance for renovation work?”. It’s a common misconception that home insurance covers any work you might be having done on your property, but unfortunately, this is not the case. If your contractor causes damage to the building, accidentally or not, your normal home insurance will not cover you. In fact, unless you have told your buildings insurer that the project is taking place, and they have agreed to provide ongoing full cover, you are unlikely to be able to claim for anything, and even then there’s no guarantee of success.
It’s also not true that your contractor’s insurance would cover any damages. Damage may occur to your home that is not the result of the builder’s negligence even though it is still caused by the renovations – for example, a wall cracking as an old extension is demolished. In this situation, the builders have not done anything wrong, so their insurance will not cover the resulting damage.
Introducing a new partnership for enhanced coverage
Oracle is delighted to have partnered with a specialist renovation insurance provider. This is great news for Guernsey residents completing works on their property that take them outside normal home insurance parameters. Director Paul Cotterill expressed his enthusiasm about the partnership, stating, “This is a great additional product for us to offer to both existing and new clients and helps provide absolute clarity for customers completing renovations that aren’t sure would be fully covered by their current insurer. We can provide the cover during the build and then switch them to a competitive house insurance policy when the property is completed. This provides complete peace of mind. So far we have seen great interest in the product with local clients.”
This collaboration is particularly beneficial for homeowners undertaking large-scale projects that standard home insurance policies do not typically cover. By securing renovation-specific insurance, homeowners can safeguard their investment throughout the construction phase and transition seamlessly to comprehensive home insurance once the project is complete.
The benefits of specialised renovation insurance
The primary advantages of opting for specialised renovation insurance include:
- Comprehensive Coverage: Protects against risks that are unique to construction projects, such as unfinished structures, materials theft, and onsite accidents.
- Peace of Mind: Knowing that you have the right coverage in place allows you to focus on the renovation without worrying about potential financial setbacks.
- Flexibility: Policies can be tailored to fit the specific needs and duration of your project.
- Seamless Transition: As highlighted by Paul Cotterill, Oracle’s partnership allows homeowners to easily switch to a regular home insurance policy once renovations are completed, ensuring continuous coverage.
Key considerations for homeowners
When undertaking a renovation, homeowners should:
- Consult with Insurance Experts: Engage with specialists like Oracle to understand the scope of coverage needed for your specific project.
- Review Contractor Credentials: Do your research on reputable contractors, the Guernsey grape-vine is always a great source for feedback. Also check that a firm is insured to minimise risk.
- Maintain Clear Documentation: Keep detailed records of the renovation process, including costs, materials used, and contractor agreements.
- Stay Informed: Regularly update your insurer on the progress of your renovation to ensure ongoing compliance with policy terms.
In summary, renovating a property is a significant investment and undertaking the right insurance measures is crucial to protect that investment. This new partnership offered by Oracle marks a significant step forward for Guernsey residents, offering them tailored solutions and peace of mind. As you embark on your renovation journey, ensure that you are well-informed and adequately covered to enjoy the transformation of your home without unnecessary risks.
