We joined Gallagher for the first Private Client Spotlight session to talk about a familiar problem in renovations. The building work feels like the headline risk, but the real trouble often sits in the small print.

Douglas’ view was simple: there are only two ways to insure a renovation project – badly or properly. Your home is likely to be one of your biggest assets, so handing the insurance responsibility to a contractor you barely know and who is unlikely to understand insurance is a gamble. Most contractors only have liability insurance, where you have to prove negligence, which can take a long time to solve and can be extremely expensive.

That is why an owner-controlled insurance is so important. The property owner holds the policy, understands the terms, and can keep the cover valid throughout the works. It also helps protect the owner if a contractor breaks policy conditions.

The contract is always the most important to get right. A JCT contract sets out the framework for how works are delivered, including joint names insurance provisions that many standard home insurers are not keen to provide.

Douglas discusses the key aspects that clients need to know, including:

• Control the cover: keep the insurance in the property owner’s name through an owner controlled insurance programme.
• Use the right contract: a JCT contract helps clarify responsibilities, including joint names insurance for the works as investment increases.
• Speak to your broker early: the pre-tender stage is the point to align contract clauses, responsibilities, and insurance requirements.
• Do not ignore liability: injury claims are not capped in the way many people assume, and Party Wall exposures can leave the owner in the firing line if a contractor fails.
• Know what a works policy will not cover: latent defects and contractor insolvency sit outside standard works cover, so warranty insurance can be worth considering for significant structural works or new builds.

Want to get more insights? Watch the full interview with Gallagher.

Educating brokers on key insurance principles is what we are here to do. You can find other ways to learn more about contract works and renovation insurance, including our free CPD programme, our podcast series, or you can follow us on LinkedIn for weekly insights and guidance into how we can support you.