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What happens if the cost of works has been under-estimated?

Like all material damage policies, Renovation Underwriting policies are subject to the condition of average. If the sums insured are significantly understated, then the condition of average will apply.

A policy does include automatic uplift under both the buildings and works heads of cover. If the disclosure of sums insured at inception can be shown to have been reasonably and fairly estimated, then the policyholder will benefit from this protection in the event of a claim – if it transpires that the sums insured have been accidentally understated.

For larger projects, particularly when high-end fit outs will occur, it is often not possible to accurately estimate the final spend. In these circumstances, we can issue the cover on a declaration basis.

If you become aware that a project is costing significantly more than anticipated, please let us know. We can increase the works sum insured by endorsement at any time.