How can I check if my builder has insurance?
Key takeaways
Your builder should have insurance to cover legal, financial, and operational risks
It’s a legal requirement for your builder to have employers’ liability insurance if they employ staff (other than family members) in the UK
A reputable builder should show you their insurance certificates and policies
Why does my builder need insurance?
If you’re about to start a renovation project, have you thought about the consequences if something goes wrong? Say you’re having a loft conversion done and the builder accidentally puts their foot through the floor. Or, a wall collapses unexpectedly and someone is injured. That’s where insurance comes in. It’s important to consider not just your own home insurance but what insurance your builder might have.
What insurance should my builder have?
Public liability insurance
Public liability insurance covers legal costs and compensation payments should a member of the public sue because they have been injured or their property has been damaged by your builder’s work.
For example, a passerby might injure themself by tripping over some building materials and make a compensation claim.
Employers’ liability insurance
If your builder employs staff in the UK (other than a family member) then legally they must have employers' liability insurance. It covers compensation claims from employees if they are injured (for example, by falling scaffolding) or become ill due to their work.
The cover must be for at least £5 million and come from an authorised insurer. If your builder doesn’t have this insurance they could be fined £2,500 every day they are not properly insured.
Contract works insurance
Contract works insurance, also known as 'construction insurance', 'construction all risk insurance' or ‘contractors all risk’ (CAR), covers the building project itself should the work in progress be damaged or destroyed by a fire, flood or vandalism, for example. The policy should cover the cost of re-doing the work.
Professional indemnity insurance
If your builder is doing any of the technical design work or gives you professional advice they ought to have professional liability insurance, which covers them for claims made for professional negligence, as well as claims for losses due to errors or omissions in the provided advice or services.
It is vital if a design flaw causes structural issues.
How can I check if my builder has insurance?
Ask your builder for proof of insurance: A reputable builder will be happy to provide the necessary documents. These should include a current and valid insurance certificate. Ensure you receive a copy, either physical or digital, to review.
Verify the insurance documents: Check the dates to make sure the policy is active during your project. Additionally, confirm the insurer's details by contacting them directly, if possible.
But remember that even if you see the insurance documents there is no guarantee that the builder won’t simply cancel the policy without you knowing.
What happens if my builder doesn’t have builder’s insurance?
If someone gets hurt or something goes wrong during your building or renovation project and your builder doesn’t have the right insurance you, as the homeowner, could end up going to court and having to pay damages and legal fees.
Should my builder give me a guarantee?
Yes, a reputable builder should guarantee their work for at least 12 months or offer a longer insurance-backed warranty, which could cover the cost of getting work redone or finished if your builder does a poor job or goes bankrupt.
Do I need to let my insurer know about building work?
Yes, you need to inform your insurer about alterations you’re making to your property or you risk invalidating your policy. Be prepared to answer questions that help your insurer gauge the level of risk involved in your renovation project. They will want to know about:
The total cost of the renovation
The expected duration of the work
Whether the property will be unoccupied during the renovation
Details about the builders or contractors, including their public liability insurance
What insurance do I need for building work?
You’re likely to need separate cover to your standard home insurance for aspects like:
Accidental damage
Theft of contents and materials
Personal accidents
Legal cover for potential disputes with construction companies
Compare home insurance after renovation
After the renovation work is completed, it's a good idea to reassess your standard home insurance policy to make sure your newly renovated home is adequately protected and that you're getting the best deal.
Compare home insurance quotes from different insurers to find the best price for the type of cover you want. Don't want more tasks on your to-do list? MoneySuperMarket can do the work for you, saving you time and money.
Author
Sarah Tooze
Car & Van Insurance Expert
Sarah Tooze has been a motoring journalist for more than 15 years, specialising in company cars and vans, and has won a number of awards during her career, including the Newspress ‘Automotive...
