Insurance during renovation

[AMc]

I'm hoping for your experience about insurance during your self build conversion/renovation projects.

Our unlisted house is divided into 2 dwellings, we're about to renovate the 'back half' and reintegrate the house. This involves partial reroofing, removal of a section of load bearing wall and dismantling/reconstructing a large vinery.

I have a friendly local builder on an hourly rate + direct paid labour. I have heating, electrical & plumbing contractors lined up. I will be buying (most) materials direct and doing some of the work too.

Our buildings and contents insurer - Norwich Union - have been informed and are happy to continue cover (minus water and storm damage during the period we're reroofing). They won't however cover any employer liability for the directly employed labour so I definitely need that.

I've contacted La Playa as a result of this site and they are preparing a quote (very helpful on the phone)
http://www.periodproperty.co.uk/ppuk_insuring_renovations.shtml

I've been looking at the self build insurers
http://www.renovationzone.com/get_a_quote.asp & http://www.self-builder.com/sb3/shared_public/site-insurance-get-quote.aspx (same company)
http://www.buildstore.co.uk/finance/buildcare-online-quote.html

One company have already told me they are not able to help because we're staying in the house during the work.
http://www.project-builder-insurance.com

Out of this list is there anything I definitely should have and is there anything I can do without?

1 - Building Works, Temporary Works and Materials
2 - Existing Structure (on Conversions, Renovations, Extensions)
3 - Own and Hired Plant, Tools and Equipment
4 - Residential Caravan, Site Huts, Containers and Contents
5 - Employees' Tools and Personal Effects
6 - Employer's Liability
7 - Public Liability
8 - Legal Expenses
9 - Personal Possessions
10 - Personal Accident & Broken Bones
(http://www.selfbuildzone.com/info_SI.aspx)

What cover did you have, from who and would you recommend them?

Thanks in advance!

 

[Pford75]

Even if you are employing trades direct (rather than via a main contractor), they should still have their own insurance (unless you are actually employing them, in which case you would have to pay their employers NI, PAYE tax etc.)

So, in that respect, I wouldn't worry too much about employers insurance.

We insured via a specialist broker (Aon Private Clients) and our insurers are Brit Insurance (the policy is called 'Platinum') and this seems to have covered all of our needs. We had temporary exclusions for theft whilst we had trades in the house and for flood until we had a 'leak detector' fitted...but otherwise it seems to cover most things. However, my suggestions....

1. Get the cover levels right. We've had lots of threads on this one - doesn't matter how good the policy is if you are underinsured. Preferably have the insurer determine the cover level they are happy with (after a site visit) rather than you providing a figure.

2. Plant, tools, materials should remain the property of trades until the work is completed. This means that it's their responsibility to decide whether to insure. ie. If the plumber leaves materials outside and they are stolen....it's his job to replace them. If you have to hire equipment yourself, I would recommend taking the plant hire insurance on a case by case basis.

3. Check trades insurance (and ask to see the proof of cover)....if the builder drops paint on a carpet, or the plumber puts his foot through the ceiling....they should pay to make this good. You might want to discuss this with your trades and see if they agree

 

[Flyfisher]

Whatever your insurance cover, don't forget to turn off the vacuum cleaner at the end of the day . . . .
http://news.bbc.co.uk/1/hi/england/7645228.stm

 

[AMc]

Thanks for the thoughts so far.

My big worries are a serious problem during the structural work which means we need to rebuild a chunk of the house (unlikely but possible) or an accident that causes someone to be seriously injured (always a risk on a building site).

The employer liability is a bit odd because I'm employing a self employed, 1 man builder to take the lions share of the work - I'm sure the responsibility is his but I want to ensure that should the worst come to the worst we would be covered if he had a serious accident. Likewise he does employ 'casual labour' though he knows them well and I would worry about their cover.
I'm also using labour from my friend's business, so technically contracting that company but again I want to be sure that we/they would be covered in the event of a serious accident without any dispute.

 

[Pford75]

Just checked and the Brit policy we have does provide employee cover....but....I would speak with the broker or insurer to ascertain whether the situation you describe constitutes an employer>employee relationship. ie. If you are not playing someone's employer NI contributions, would the insurer use this to wriggle out of any liabilities in the event of a claim?

 

[Flyfisher]

My take on the 'employer' question has always been that you are only an employer if you pay employer's NI and the handle PAYE for the person/people you're 'employing'. If you have, say, a plumber install a CH system over a couple of months then you are appointing them as a contractor, i.e they are acting as a company doing work for you for a specific price and they are responsible for all the 'employer' issues such as NI, PAYE. You should also expect them to have suitable insurance cover for themselves and 3rd party liability (but it's always worth checking!).

But I'm not an expert by any means and you'll probably only get definitive answers from your insurance company. Since you have very specific concerns, I would suggest writing to your insurer for clarification. Indeed, different insurers will likely have different views on such things, so the only answers that really matter must come from your insurer anyway.

Much insurance anguish is concerned with trying to second guess how insurance companies might wriggle out of any claim and one the biggest issues I have is with the general requirement to inform them of any material change to their risk - what is 'material' ?! If in doubt, tell your insurer, then they can't use it as an excuse - although they may want more money for the extra risk!

I'm with NFU and informed them of my recent renovation works and the fact that I'd have scaffolding around the house for some time. It didn't incur any additional premium.

 

[AMc]

Thanks for the advice - I've had another £1400 quote from buildstore who had a detailed explanation of what I'm doing and a look at photos and the plans.
I'm just waiting for forms from them and the quote from La Playa to make the decision.