A renovation usually starts with colour palettes and plans for a new kitchen, not with thoughts about insurance. Yet more accidents happen in a home during renovation than in everyday life: water leaks after plumbing work, electrical faults, flooded neighbours and damaged belongings. On top of that, standard home insurance may not work the way the owner is used to while the works are underway.

The good news is that most renovation risks can be managed with a few simple steps that cost little money and little time. The key is to take them before the work starts, not when a stain has already appeared on the neighbour's ceiling.

How a renovation changes the way your home insurance works

The first step is notification. Many policies include a duty to inform the insurer about significant changes in risk circumstances, and a major renovation or rebuild usually counts as one. If the insurer does not know about the works and an accident happens, the payout can be reduced or, in some cases, refused. A short call or email before the work starts is the cheapest risk management tool available.

The second step is understanding what the policy does not cover during the works. Standard apartment insurance usually does not compensate losses caused by the building works themselves: poorly installed plumbing, incorrectly connected wiring or damage the workers cause to the finish. The contractor is responsible for these risks, so before signing the contract find out whether the builder carries civil liability insurance, and put a clear division of responsibility and a warranty for the works into the contract.

Theft risk deserves attention too. During a renovation, outsiders are regularly present in the home, windows tend to stay open, and some owners move out for the duration of the works. Policies may set conditions for theft cover linked to occupancy and to door and window security, so check how your policy behaves if the home stands empty during the renovation.

If the renovation takes place in a private house, the same principles apply to house insurance, only the risks tend to be bigger: replacing a roof, facade works or building an extension change both the value of the building and its vulnerability to storms and rain. Always secure and cover unfinished structures before weekends and nights, because an open roof left exposed is one of the most expensive renovation risks there is.

Liability to neighbours and what to do after the works

In an apartment building the biggest financial risk is often not your own home but the neighbours. Plumbing work is the classic example: one badly connected pipe can flood several floors, and the losses can far exceed the cost of the renovation itself. Check whether your policy includes a civil liability section that covers damage caused to neighbours, and what its limit is. If a company carries out the works, its liability insurance matters here as well, so do not hesitate to ask for proof of it at the quotation stage.

If you plan to do part of the work yourself, think about your own safety too. Working on a ladder, with a saw or an angle grinder is unfamiliar territory for most people, and the risk of injury is real. Accident insurance provides compensation for injuries and temporary incapacity for work while you recover and cannot earn.

Once the renovation is finished, one step remains, and it is the one owners forget most often: reviewing the sums insured. A new kitchen, a rebuilt bathroom or quality finishes increase the reinstatement value of the home. If the policy keeps the old sum, you may discover after an accident that the home is underinsured and the payout does not cover the full cost of restoration. After a larger renovation, tell your insurer about the improvements and update the sums insured for both the building and the contents.

Keep the renovation documents as well: the contract with the contractor, the acceptance report, receipts for materials and appliances. If something happens later, they will help prove both the value of the home and the responsible party, and the claims process will run much more smoothly.

A renovation is an investment in the value of your home, and properly arranged insurance protects that investment from day one: notify the insurer about the works, clarify the contractor responsibility, check your liability cover towards the neighbours and update the sums insured once the work is done. The specialists at Agento.lv will help you review your current policy or choose a new one that matches the value of your home after the renovation. Get a free consultation and an advisor will contact you within one working day.

Frequently Asked Questions

Do I have to inform my insurer about a renovation? Many policies include a duty to report significant changes in risk circumstances, and a major renovation usually counts as one. If the insurer does not know about the works, the payout after an accident can be reduced.
Does home insurance cover damage caused by builders? Usually not. The contractor is responsible for losses caused by the building works themselves. Before signing the contract, check that the builder carries civil liability insurance and agree on a warranty for the works.
What happens if I flood my neighbours during a renovation? Damage caused to neighbours is covered by the civil liability section of your policy, if it is included. Check its limit before the works start. If a company does the work, its liability insurance matters as well.
Does the policy work if I do not live in the home during the works? Policies may set occupancy conditions, especially for theft cover. If you move out for the duration of the renovation, ask your insurer how this affects the cover and whether extra security measures are needed.
What should I do with the policy after the renovation is finished? Review the sums insured. A renovation increases the reinstatement value of the home, and with the old sum the property may be underinsured. Tell the insurer about the improvements and update the building and contents sums.