Renovating a rental property can protect its value, improve energy efficiency and make it more attractive to tenants. It can also change the risk that the insurer originally agreed to cover.
A property with walls removed, exposed wiring, contractors coming and going, valuable materials on site or nobody living there is not the same insurance risk as an occupied rental home in ordinary use. Standard landlord insurance may restrict or exclude cover while substantial work is underway.
The safest time to discuss the project with the insurer or broker is before contracts are signed and before work starts—not after a claim.
Why renovation work changes the risk
Even a well-managed project can introduce hazards that were not present when the landlord policy was arranged.
Depending on the work, these may include:
- Open roofs, walls or floors
- Temporary supports and exposed structures
- Disconnected or altered electrical, gas and water systems
- Increased fire and escape-of-water risks
- Unsecured access points
- Scaffolding, skips and building equipment
- Flammable materials and hot works
- Contractors, subcontractors and deliveries on site
- Increased risk of theft, vandalism and accidental damage
- A property that is temporarily uninhabitable or unoccupied
An insurer may be comfortable with minor decorating but take a different view of a loft conversion, extension, structural alteration, full rewiring or comprehensive refurbishment. The policy wording and the insurer’s decision—not the landlord’s description of the work as “just a renovation”—determine the position.
Tell the insurer before work begins
Landlords should contact their broker or insurer at the planning stage. Do not assume that renewal disclosure is enough if work will begin during the policy term.
The insurer may ask for:
- A clear description and schedule of works
- The anticipated start and completion dates
- The total contract value
- Details of any structural alteration, demolition or excavation
- Whether the roof, external walls or floors will be opened
- Whether the property will remain occupied and habitable
- The names and experience of the main contractor and key specialists
- Copies of contractor insurance
- Details of the building contract
- Site-security and fire-prevention arrangements
- How often the property will be inspected
- Whether utilities will remain connected
- The value and ownership of materials, plant and equipment
The insurer may continue cover unchanged, impose additional conditions, restrict particular sections, charge an additional premium or decide that a specialist renovation policy is required. Obtain the decision in writing and retain it with the policy documents.
Ordinary landlord insurance may not be enough
A standard landlord policy is normally designed for a completed rental property in the condition and occupation disclosed to the insurer. It should not automatically be treated as renovation insurance.
During major work, the existing policy may reduce or remove cover for risks such as escape of water, theft, malicious damage or damage caused by the building works. Some policies may continue protecting the existing structure against specified events while excluding the new work, materials or damage arising from the project.
This creates potentially serious gaps. A fire, storm or structural failure could damage both the original building and the work completed so far, yet responsibility for insuring each part may not be the same.
Specialist renovation cover may therefore need to address the existing structure, contract works, materials and other project-specific risks. The correct arrangement depends on the policy, contract and nature of the work.
Existing structure and contract works are different
The existing structure is the building as it stood before the project began. Contract works generally means the new work being constructed, together with associated materials and fittings.
Landlords should establish who is responsible for insuring both. A contractor’s policy might protect its own work or liability, but it may not insure the landlord’s existing building. Equally, the landlord’s buildings policy may not cover the contractor’s work in progress.
Materials can also fall between policies. Items purchased directly by the landlord may not be insured by the contractor, while goods delivered to an unsecured site may be subject to strict theft conditions.
Ask specifically:
- Who insures the existing building?
- Who insures the work in progress?
- Are materials covered before and after delivery?
- Does cover apply during temporary removal or storage?
- Are plant, tools and hired equipment included?
- What excesses, limits and exclusions apply?
These responsibilities should agree with the building contract. If the contract requires insurance in joint names or places responsibility on the property owner, the insurance must be arranged accordingly.
Do not rely on the contractor’s liability insurance
Reputable contractors should carry appropriate insurance, including public liability cover and, where relevant, employers’ liability and contract works protection. Landlords should request current evidence and check that the business name, activities, limits and policy dates are appropriate for the project.
However, the existence of a contractor’s policy does not mean every loss at the property will be covered.
Public liability insurance generally responds where the contractor is legally liable for injury or property damage. If negligence cannot be established, or if a particular activity is excluded, the policy may not pay. It may also protect the contractor rather than provide direct cover for the landlord’s building or investment in the work.
Insurance should therefore be considered alongside a properly drafted contract—not replaced by a verbal assurance that “the builder is insured.” For substantial projects, landlords should take professional advice on the contractual and insurance responsibilities before work begins.
Unoccupancy can change the cover
Renovation often begins between tenancies or requires tenants to move out. That can activate unoccupancy conditions even when contractors attend during the day.
A building may also be treated as unoccupied or uninhabitable under the policy despite frequent visits. The exact definition and time limit must be checked.
Conditions may require the landlord to:
- Notify the insurer when the property becomes empty
- Arrange and record regular inspections
- Secure all doors and windows
- Remove post and waste
- Maintain minimum heating
- Drain or isolate water systems
- Switch off utilities not required for the work
- Keep gardens and external areas maintained
- Repair signs of attempted entry promptly
- Remove combustible materials at the end of each working day
Failure to follow an applicable condition could affect a later claim. The landlord should obtain confirmation of the inspection frequency and required records rather than assuming that occasional contractor attendance is sufficient.
Site security needs its own plan
Scaffolding, open access points and repeated deliveries can make a renovation site attractive to thieves and vandals. Copper, boilers, appliances, power tools and new bathroom or kitchen fittings can all be targets.
Security arrangements should reflect the insurer’s requirements and the work taking place. They may include suitable locks, temporary doors, alarms, lighting, fencing, secure storage and controlled key access.
Keep a record of everyone authorised to enter the property. At the end of each day, check that openings are protected, tools and materials are secured and waste is removed appropriately.
Do not install temporary security measures that obstruct safe escape routes or conflict with fire-safety duties.
Control fire and water risks
Renovation claims can be made worse by an unattended heat source, temporary electrical supply or open water connection.
Landlords and contractors should agree controls for:
- Hot works such as welding, cutting or roofing
- Smoking and the storage of flammable substances
- Temporary heaters and electrical equipment
- Isolation of water supplies when the site is unattended
- Fire extinguishers and detection systems
- Daily checks at the end of work
- Emergency contact and incident-reporting procedures
Where the insurer imposes a hot-work warranty or other specific precaution, it must be followed exactly. Contractors should also understand which safety arrangements are their responsibility and which remain with the landlord.
Consider neighbours and shared structures
Work involving party walls, excavation, foundations or structural support can create risks beyond the rental property itself. Damage to a neighbouring building may occur even where a contractor has not been negligent.
Ordinary public liability cover may not respond to every non-negligent loss. Depending on the project and contract, specialist non-negligent liability protection may need to be considered.
Landlords of flats must also check the lease, freeholder’s requirements and block buildings policy before starting work. The block insurer may require notice or approval, and the individual landlord’s policy is unlikely to replace insurance arranged for the building as a whole.
Planning consent, building-regulation approval, a party-wall process and freeholder consent are separate from insurance. Satisfying one does not confirm that the others have been addressed.
Review the rebuild cost after the project
An extension, loft conversion, new kitchen, additional bathroom or change in layout can increase the cost of reinstating the property after a major loss.
Once the work is complete, update the broker or insurer with the final details and review the declared rebuilding cost. The insurer may also need confirmation that the property is habitable again and details of its intended occupants and use.
Do not allow temporary renovation cover or restrictions to continue unnoticed after the project has finished. Obtain written confirmation of the ongoing landlord insurance arrangements before tenants move in.
A practical pre-work insurance checklist
Before contractors arrive, landlords should be able to answer:
- Has the insurer or broker received the full schedule of works?
- Has continued cover—or the need for specialist cover—been confirmed in writing?
- Are the existing structure, new works and materials all insured by the correct party?
- Does the building contract reflect the insurance arrangement?
- Have contractor policies been checked?
- Has unoccupancy been disclosed?
- Are inspection, security, fire and water conditions understood?
- Are liability risks involving neighbours or shared buildings addressed?
- Will the rebuilding cost and property details be reviewed on completion?
NetRent works with Clear Insurance Management and its experienced property-insurance team to help landlords examine these issues properly.
If you are planning work at a rental property, speak to us before the project begins. We can review the existing policy, discuss the proposed renovation and help identify whether the cover needs to change.
Telephone: 01352 721300
Email: insurance@netrent.co.uk
Renovation can improve a rental property, but only if the building and the investment in the work remain properly protected throughout the project.
NetRent does not provide legal advice. This article represents our general understanding of the landlord insurance and rental property market and is provided for information only.