What insurance do you need for home improvement work?

If you’re getting the builders in for a home improvement project, it might pay to think about getting some protection for your investment. After all, if you’re putting in a new kitchen, you’d make sure your new washing machine or fridge comes with a warranty, so why wouldn’t you get protection for the structural parts of the build that you’ll spend thousands of pounds on?

Let’s take a look at the insurance policies to look out for when planning your build:

Insurance policies that homeowners can take out:

• FMB Building Work Guarantee*: Structural issues with building work, like cracks and water ingress, might not become apparent until years after the building work is complete. So who foots the bill? If you have a contract in place, your builder is responsible for coming back to rectify issues under the terms of any warranty included in the contract. However, the reality is that years down the line, builders may not be able to come back to fix things – for example, they may have ceased trading or could retire.
  
  That’s where an insurance backed guarantee like the FMB Building Work Guarantee can step in and cover the cost to fix the structural defect. Having this protection covers the cost of any issues with your building work for up to a decade after the building work finishes.
  
  Your builder may offer you an insurance backed guarantee like this as part of your quote, but if not, you can take out cover for yourself.
   
  Visit FMB Insurance for a quote on FMB Building Work Guarantee
• Unoccupied buildings Insurance: If you’re planning to vacate the property while you have building work done, your existing building insurance policy may not be valid for claims that happen whilst your home is unoccupied. Taking out an unoccupied buildings insurance policy can provide cover for up to nine months and covers you for damage caused by fire, storm, water leaks, theft and other issues.
   
  Visit FMB Insurance for a quote on unoccupied buildings insurance

Check what cover your builder already has in place

Your builder should always be able to offer you a written contract, including a breakdown of the different elements of the work, any VAT that applies and the warranties that will be in place (read our guide to what a good builder’s contract should include). Having a signed contract is important as it forms the basis of your legal protection, and without it you could be at risk of being out of pocket if something goes wrong. At the Federation of Master Builders (FMB), all of our members are able to offer you a written contract for their work.

Once you know that a contract will be available, make sure you ask your builder about what insurance they have in place. This may include:

• Liability insurance: This means your builder is insured for causing accidental damage to your property or neighbouring properties; or causing injury to the people in your home. This can include both public liability (offering you protection as the homeowner) and employers’ liability insurance, which protects their employees and subcontractors who will be working on your home.
• Contract works insurance: Sometimes called a ‘contractors all risk’ policy, this provides cover for new building works – including extensions, loft conversions and new build houses. It covers the cost for the builder to repair or rebuild if the work is damaged by events such as vandalism, theft, fire or flood. It can be a useful policy to have in place, for example, if your new extension suffers flood damage or is broken into whilst work is in progress.
• Professional indemnity insurance:  Having professional indemnity insurance in place means your builder can cover the cost if you need to make a claim against them for issues with the design or their advice to you. It can also cover damage caused to your property by the builder as well as negligence, injury, breach of confidentiality and providing incorrect information.  

Don’t forget – it’s good to know your builder has protection in place while they’re on the job. But also think longer term and make sure you’re protecting your investment in your home for the years to come.

If your builder doesn’t already include an insurance backed guarantee as part of their quote, you can take out your own FMB Building Work Guarantee to give you up to a decade of protection. Just contact the FMB Insurance team for a quote and they will walk you through the details, or alternatively email ibg@fmb.org.uk.

Choose a builder that gets it right first time

Choosing a quality builder can save you time and money in the long run. You should always check your builder’s credentials thoroughly, and being a member of a trade organisation like the FMB is a sign that they can carry out work to a high standard, as we independently vet and inspect our members work on site before they can join.

All of our members can offer you a written contract for their work, are committed to abide by the FMB’s Code of Conduct and can provide you with access to our impartial dispute resolution service for your peace of mind.

Once you’ve got the right people lined up for the job, making sure that they have the right insurance in place is just as important. Visit the FMB Insurance website to find out more.

* FMB Building Work Guarantee is administered by FMB Insurance, which is authorised and regulated by the Financial Conduct Authority.