Renovating a rental property changes the risk your landlord insurer agreed to cover. The building is often empty, it may be open to the weather, there are trades on site with heat and power tools, and the neighbours are close to your works. Most landlord policies are written for a let property with someone living in it. If you don't tell the insurer about a refurbishment, a claim made during the works is the one most likely to be cut down or refused.
This guide is for landlords planning anything from a kitchen and bathroom refit between tenancies to structural work: knocking through walls, a loft or rear extension, re-roofing, underpinning, or converting a house into flats or an HMO. It covers who insures what between you and your builder, JCT insurance clauses, the conditions insurers attach to a property under works, and your liability to neighbours and visitors.
If the property is simply empty between tenants with no works going on, our void and unoccupied property page covers that. This guide is about the extra layer that building work adds.
The legal rules below apply to England and Wales unless we say otherwise, and policy wordings vary between insurers.
Already insured and about to start works? Send us your current policy or renewal and the outline of the project, and we'll review it against the insurers on our panel. Start with a void and unoccupied quote review.
Why building work changes your landlord insurance
Three things change at once when a renovation starts, and each one affects a different part of your cover.
Occupancy. Most landlord policies define the property as unoccupied once nobody has lived there for a set number of consecutive days, often 30, 45 or 60 depending on the wording. After that, cover usually narrows. Escape of water, theft and malicious damage are the sections most often restricted or excluded. A refurbishment that empties the property for three months can take you past that limit before the plaster is dry.
Physical risk. Hot works such as soldering and roofing torches, temporary electrics, stored materials, open roofs and walls, part-drained heating and scaffolding that gives access to upper floors are all risks a tenanted property doesn't have. Insurers need to know they're there.
Liability. A property under works has more people around it: builders, subcontractors, surveyors, delivery drivers, and sometimes trespassers. Excavation and structural work can damage neighbouring buildings. Some of that liability belongs to your contractor, some to you as the owner, and some to whoever the contract says should insure it.
What size is your project? How to frame it for an insurer
Insurers don't use one definition of "renovation". They sort projects by structural change, how long the property will be empty, and contract value. Use this table to frame your project before you call your insurer or broker.
Project type | Typical examples | What insurers usually want to know | Where cover often goes wrong |
|---|---|---|---|
Cosmetic refresh | Redecorating, new flooring, replacing kitchen doors, deep clean between tenants | Expected empty period. Some insurers don't need notice for minor works, but many do once the property is empty | The property drifts past the unoccupancy limit because the refresh took longer than planned |
Non-structural refurbishment | Full kitchen or bathroom refit, rewire, new boiler and heating system, replacement windows | Start and end dates, contract value, whether the property is empty, whether hot works are involved, whether the heating will be drained | Escape of water claims while the system is part-drained, theft of new kitchen units or a boiler from an empty site |
Structural renovation | Removing load-bearing walls, loft conversion, rear or side extension, re-roofing, underpinning, basement work | All of the above, plus the structural engineer, building control route, party wall position and the JCT or other contract you're using | The existing building isn't insured for the works period, or nobody has arranged insurance for damage to neighbours that isn't anyone's fault |
Conversion or change of use | House into flats, house into an HMO, commercial unit into residential | Planning, building control, licensing, the end use, and the rebuild value once finished | Insuring the finished building on the old description, or letting before the cover reflects the new use |
If you're converting to an HMO, read our landlord licence and insurance mismatch guide before the first tenant moves in. The property described on the policy and the property described on the licence need to match.
The renovation timeline: what to do and when
Before you sign the building contract
Read your current policy's works and unoccupancy wording. Look for the definition of "unoccupied", the number of days, the conditions that apply once the property is unoccupied, and any condition about building works, alterations or "the property undergoing renovation". Some policies exclude loss arising from works above a certain contract value unless the insurer has agreed in advance.
Decide who insures the existing building and the new works. This should be written into the contract. See the section on JCT contracts below.
Check your contractor's insurance. Ask for current certificates or schedules for public liability and, if they employ anyone, employers' liability. Check the limits, the policy period, and whether the activities described match the work they'll do for you. A decorator's policy may not cover structural work or roofing with a torch.
Check your mortgage offer and lease. Lenders often require you to keep the property insured and may require consent for structural alterations. If the property is leasehold, the lease will usually require the freeholder's consent for alterations, and the freeholder normally insures the building. See our guide to landlord insurance for leasehold flats.
Before work starts on site
Tell your insurer in writing. Give the start date, expected finish, contract value, scope of work, whether anyone will live in the property during the works, and the name of the contractor. Ask the insurer to confirm in writing what cover continues and what conditions apply.
Serve any party wall notices. If the work falls under the Party Wall etc. Act 1996, the notice periods are set by law (see below).
Sort building control and planning. The Building Act 1984 makes it an offence to contravene building regulations (section 35). GOV.UK lists common alterations that may need approval, including installing a bathroom involving plumbing, replacing windows and doors, replacing roof coverings, and replacing fuse boxes and connected electrics. Work that should have had approval and didn't can make a later claim much harder.
Record the property's condition. Date-stamped photos and video of every room, the roof, the boundary walls and the neighbours' facing walls give you something to point to if there's a dispute later.
During the works
Comply with the unoccupancy conditions. Typical conditions are listed in the next section. Keep a simple log of inspections, with dates and who visited.
Keep the insurer updated. If the scope grows (an extension becomes an extension plus a loft), the finish date slips, or the contract value rises, tell them.
At practical completion
Update the rebuild value. An extension, loft conversion or high-spec refit can raise the cost of rebuilding. If the sum insured doesn't keep up, you could be underinsured and any claim reduced. Our landlord buildings insurance guide explains rebuild values.
Collect paperwork. Building control completion certificate or competent person certificates, electrical installation certificate, gas safety record for any new gas appliance, party wall award and schedule of condition sign-off, warranties and guarantees.
Tell the insurer the works are finished so that any works conditions or restrictions can be lifted.
Before you re-let, describe the property as it now is. New safety certificates after a rewire or new boiler (see our landlord safety certificates checklist and EICR guide), more bedrooms, a new layout, or a change to an HMO or flats all need to reach your insurer. Restart any contents or loss of rent cover you reduced for the works; see our landlord contents insurance guide.
Who insures what: you, your contractor, or both
The question that matters most in a renovation claim is which policy should pay. The answer depends on the type of loss and on your contract. The table below sets out the usual starting position. Your contract can change it, which is why it pays to agree insurance terms in writing before work starts.
Type of loss | Usually insured by | Notes |
|---|---|---|
Damage to the existing building (fire, flood, storm) during works | The owner, under buildings insurance adapted for the works | The contract may require this to be in joint names with the contractor. Check your policy allows that |
Damage to the new works and materials on site before completion | Contractor or owner, depending on the contract (contract works or contractors' all risks cover) | Many small builders hold annual contract works cover. Confirm the limit covers your contract value |
Injury to the contractor's own employees | The contractor's employers' liability insurance | Employers' liability is compulsory for most employers, with a minimum of £5 million under the Employers' Liability (Compulsory Insurance) Regulations 1998 |
Injury to a visitor or passer-by, or damage to a neighbour's property caused by negligent work | The contractor's public liability insurance, with your property owner's liability as a back-stop | A claimant may bring a claim against the owner as well as the contractor |
Damage to a neighbour's property that isn't anyone's fault (subsidence, vibration, removal of support) | Non-negligent liability insurance, arranged for the owner's benefit | Standard public liability policies generally only respond where someone was negligent |
Contractor's tools, plant and site huts | The contractor | Not your responsibility unless the contract says so |
Your own fixtures, fittings and contents left in the property | You | Often excluded or restricted while works are under way. Move or protect them |
Lost rent while the property can't be let | Usually nobody, for planned works | Loss of rent cover is generally triggered by an insured event like a fire, not by planned refurbishment. A fire during the works may be a different story |
If your builder is a sole trader without employees, they may not need employers' liability insurance, but they still need public liability insurance for work on your property. Our contractor insurance guide explains what contractors and tradesmen usually carry, which helps when you're checking certificates.
JCT contracts and insurance clauses in plain English
Many building projects use a contract published by the Joint Contracts Tribunal (JCT). The JCT forms you're most likely to see on a landlord project are the Minor Works Building Contract for simpler jobs and the Intermediate or Standard Building Contract for larger ones. Each contains insurance clauses that decide who insures the works and the existing building. The clause numbers differ between forms and editions, but the options are the same in principle. Options A and B deal with new buildings, where either the contractor or the employer (you, as the person paying for the work) insures the works.
Option C. Works in or extensions to existing structures. This is the one that applies to most landlord renovations. According to the JCT, under Option C the employer arranges insurance of the works against "all risks" and of the existing structure and its contents against "specified perils", a narrower set of events defined in the contract. The JCT explains why: the value of the existing building may be more than the contractor can insure, and having the works and the existing building with the same insurer avoids arguments about which policy responds.
A standard landlord policy is in your name, not in joint names with your contractor, and may not cover the works themselves. Construction insurance specialists note that joint-names cover for existing structures can be hard to obtain, so contracts are often amended to match what the employer can actually buy. If you sign an unamended Option C contract without matching insurance, you could be in breach of contract, and the contractor may argue it shouldn't bear a loss you were meant to insure. Read the insurance clause with your insurer or broker before you sign, and agree any amendments in writing.
Non-negligence insurance (often called "6.5.1 cover"). Under the Standard Building Contract this sits at clause 6.5.1, and similar provisions appear in other forms. It covers the employer's liability for damage to neighbouring property caused by collapse, subsidence, heave, vibration, weakening or removal of support, or lowering of ground water arising from the works where nobody was negligent. A contractor's public liability policy normally pays only where the contractor was at fault, so this cover fills a real gap. It matters most for basement work, underpinning, piling, deep excavation and work on terraced or semi-detached houses. It's typically arranged by the contractor in joint names, for your benefit, at your cost.
No written contract? Plenty of smaller jobs go ahead on a quote and a handshake. If so, confirm by email before work starts who's insuring the building, who's insuring the works and materials, the contractor's public liability limit, and what happens if the work damages next door.
Vacancy and works conditions insurers usually apply
When a property is empty during works, insurers commonly agree to continue cover only if certain conditions are met. The exact wording varies, but these are the ones we see most often.
Regular inspections. Inside and out, often weekly, by you or someone you appoint. Keep a dated record.
Water drained down or turned off at the mains when nobody is working on site, unless the heating is kept on to a minimum temperature in winter, with other utilities isolated where not needed.
All doors and windows locked and any other security protections in use when the site is unattended.
No accumulation of combustible waste in or next to the building, and skips sited away from the walls where possible.
Hot works permits or precautions. Some policies require that contractors using heat follow specific precautions, such as clearing combustibles, having extinguishers on hand, and checking the area after work stops.
Restricted perils. Cover may be reduced to fire, lightning, explosion and aircraft only once the property is unoccupied, with escape of water, theft and malicious damage excluded.
How the law treats breaches of these conditions
If your landlord policy is business insurance (most are), the Insurance Act 2015 limits how far an insurer can rely on a breached condition. Two sections matter.
Section 10 (warranties). A breach of warranty no longer ends the policy. Instead, the insurer has no liability for losses that happen while the breach continues. Once the breach is remedied, cover resumes for later losses.
Section 11 (terms not relevant to the loss). Where a condition is aimed at reducing the risk of a particular kind of loss, at a particular place or time, the insurer can't use a breach to refuse a claim if you can show the breach could not have increased the risk of the loss that actually happened. For example, missing a weekly inspection shouldn't normally defeat a claim for storm damage that happened the night after a visit.
These are useful protections, but they don't help if you never told the insurer about the works. Before a policy starts or renews, the Act requires a fair presentation of the risk (section 3), and most policies also include a condition requiring you to tell the insurer about changes like building works or unoccupancy during the policy year. Relying on section 11 after the event is a poor substitute for getting the conditions agreed at the start.
Your liability during the works
Owning a property under renovation brings liability that doesn't go away just because you've hired a contractor.
To neighbours
The Party Wall etc. Act 1996 applies in England and Wales to work on a shared wall or structure, building a new wall at the boundary, and excavating near a neighbour's foundations. The key notice periods are set by the Act:
Type of work | Section | Minimum notice |
|---|---|---|
Building a new wall on or at the line of junction (boundary) | Section 1 | At least one month before work starts |
Work to an existing party wall or party structure (cutting in, raising, removing chimney breasts, rebuilding) | Sections 2 and 3 | At least two months before work starts |
Excavating within 3 metres of a neighbour's building to below their foundations, or within 6 metres where a 45-degree line from their foundations is cut | Section 6 | At least one month before work starts |
GOV.UK confirms the neighbour has 14 days to consent in writing. If they don't respond or don't agree, a dispute arises and surveyors settle it by an award under section 10. Under section 7(2), the building owner must compensate the adjoining owner and occupier for any loss or damage resulting from work done under the Act. That's a statutory liability on you as owner, which is one reason non-negligence cover matters on party wall projects.
To visitors and trespassers
Under the Occupiers' Liability Act 1957, an occupier owes visitors a common duty of care to take reasonable care that they'll be reasonably safe. The Occupiers' Liability Act 1984 adds a more limited duty to people who aren't visitors, including trespassers. That duty arises if the occupier knows or has reasonable grounds to believe there's a danger, that someone may come into its vicinity, and that it's a risk they could reasonably be expected to offer some protection against.
On a building site the contractor usually controls the site, but the owner can also be an occupier. Your property owner's liability section is the usual back-stop, so check it continues during the works. Scotland has its own occupiers' liability law.
To the people doing the work: CDM 2015
The Construction (Design and Management) Regulations 2015 (CDM) distinguish between domestic and commercial clients. A "domestic client" is one for whom a project is carried out that isn't in the course or furtherance of a business. HSE describes a domestic client as an individual having work done on their own home, or the home of a family member, that isn't done as part of a business.
Letting property is generally a business activity, so a landlord commissioning work on a rental property should expect to be treated as a commercial client. That means the client duties in regulation 4 apply to you directly rather than passing to your contractor:
make suitable arrangements for managing the project, including enough time and resources
provide pre-construction information to designers and contractors as soon as practicable (existing drawings, asbestos surveys, known hazards, services)
make sure a construction phase plan is drawn up before work starts
where more than one contractor will work on the project, appoint a principal designer and principal contractor in writing (regulation 5)
A project must be notified to HSE if the construction work is scheduled to last longer than 30 working days and have more than 20 workers working at the same time at any point, or to exceed 500 person days (regulation 6). Most single-property refurbishments fall well below that, but conversions and larger block works may not.
On asbestos, the Control of Asbestos Regulations 2012 (regulation 5) prevent an employer carrying out demolition, maintenance or other work that could expose employees to asbestos unless they've assessed whether it's present, or they assume it is and follow the regulations. For properties built before 2000, a refurbishment and demolition survey before intrusive work is the usual way to meet that, and providing it is part of your pre-construction information.
If tenants stay in the property during works
A bathroom refit or window replacement may happen with tenants in place. The property stays occupied, but the risks change.
Access. For tenancies where the landlord's repairing obligation is implied, section 11(6) of the Landlord and Tenant Act 1985 gives the landlord a right to enter at reasonable times on 24 hours' written notice to view the condition of the property. For works, check the tenancy terms and agree access with the tenant in writing.
Damage to the tenant's belongings. Your landlord policy doesn't usually cover tenants' own possessions. If your contractor damages them, the contractor's public liability is the first place to look.
Temporary loss of facilities. If the kitchen or bathroom is out of action for longer than planned, you may face a claim for a rent reduction. Planned works don't normally trigger loss of rent cover.
Four renovation scenarios and how cover tends to respond
These scenarios are illustrations, not real claims. The outcome in any case depends on the policy wording and the facts.
1. A fire starts from a roofer's torch on a flat roof extension. The existing house is damaged. If the insurer knew about the works and the contract said who insures the existing structure, that policy would normally respond, and the insurer may then try to recover from the roofer's public liability insurer. If you didn't disclose the works, expect an argument that the risk it accepted wasn't the one that caused the loss.
2. A pipe bursts in January in an empty property mid-refit. The heating had been drained but the plumber refilled the system for testing and left it on with the water still on at the mains. If the policy condition required the water to be turned off when the property was unattended, the claim is at risk. Section 11 of the Insurance Act 2015 won't help here, because the condition is aimed at exactly that kind of loss.
3. Underpinning causes cracks in the neighbour's wall. The contractor followed the engineer's design and nobody was careless. The contractor's public liability policy is unlikely to pay because there's no negligence. Non-negligence insurance, if arranged, is designed for this. The building owner's duty to compensate under section 7(2) of the Party Wall etc. Act 1996 applies regardless.
4. A teenager climbs the scaffold at night and falls. The occupier's duty under the Occupiers' Liability Act 1984 may apply if there was a known danger and it was foreseeable that people would come onto the site. The contractor's public liability policy usually responds first, but the claimant may also pursue you as owner. Removing or boarding scaffold ladders each evening reduces the risk and helps the defence.
What to send for a renovation insurance review
When you ask us, or any broker, to review cover for a renovation, the most useful pack includes:
your current landlord policy schedule and wording, or your renewal invitation
the property address, construction type and approximate age
the scope of works, which parts are structural, the start and finish dates and contract value
whether the property will be empty, and for how long
the contract and its insurance clause (JCT form and edition, or the contractor's terms)
your contractor's public liability and employers' liability certificates
the party wall and building control position
lender and, for leasehold, freeholder consents
the plan after the works: same let, new layout, HMO, or sale
If you have several properties, our landlord insurance guide covers how portfolio and single-property cover differ. To compare your wider landlord cover, use compare landlord insurance quotes.
Frequently asked questions
Do I need special insurance to renovate a rental property?
Usually you need your existing landlord policy adapted for the works rather than a completely new product. Tell your insurer before work starts. They may continue cover with conditions, ask for a different policy designed for properties under renovation, or decline. For larger jobs, your contract may also require insurance of the works and non-negligence cover.
Does landlord insurance cover a property that's empty during refurbishment?
Often only partly. Most policies restrict cover after a set number of unoccupied days, commonly to fire, lightning, explosion and aircraft, and may exclude escape of water, theft and malicious damage. Some insurers will agree wider cover for a property under renovation if you meet conditions such as regular inspections and draining the water system.
Do I need to tell my insurer about building work?
Yes, in almost all cases. Most policies contain a condition requiring you to notify the insurer of building works, alterations or unoccupancy, and at renewal the Insurance Act 2015 requires a fair presentation of the risk for business insurance. Failing to disclose works is one of the most common reasons renovation claims run into trouble.
Who insures the building during a JCT contract?
It depends on the insurance option chosen. For works in or extensions to existing buildings, JCT Option C puts the responsibility on the employer (you) to insure the existing structure and the works. That's often amended in practice because joint-names cover for existing structures can be hard to arrange. Agree the position in writing before signing.
What is non-negligence or 6.5.1 insurance and do I need it?
It covers your liability for damage to neighbouring property caused by collapse, subsidence, heave, vibration, weakening or removal of support, or lowering of ground water arising from the works where nobody was at fault. Consider it for basement work, underpinning, excavation near neighbours' foundations, and work to party walls in terraced or semi-detached houses.
Is my builder's public liability insurance enough?
It's essential but not enough on its own. It generally covers injury and property damage caused by the builder's negligence. It doesn't insure your existing building against fire or flood, normally doesn't cover non-negligent damage to neighbours, and won't cover your own contents or lost rent.
Does CDM 2015 apply to landlords?
Yes. CDM 2015 applies to building work generally. Because letting property is usually a business activity, a landlord commissioning works on a rental property is normally a commercial client rather than a domestic client, so the client duties apply directly. HSE guidance on clients explains them.
Do I pay council tax on a property being renovated?
Usually yes, but there may be relief. In England, GOV.UK says your council may give a discount while a property is undergoing major repair work or structural changes, and if you're making major improvements and it can't be lived in, you can ask to have it removed from the Council Tax list until the works finish. The empty home premium may not apply for up to 12 months while a home is undergoing major repairs or structural alterations. Ask your council, and tell them when the work is finished. If you're upgrading insulation or heating at the same time, our EPC C 2030 guide for landlords covers the energy rules.
Get your renovation cover reviewed
Send us your current landlord policy or renewal, with a short description of the works, dates, contract value and contractor. We'll check whether your buildings, liability and unoccupancy terms fit the project, flag gaps in the contract's insurance clause and around non-negligent damage, and review the position against the insurers on our panel. Start your void and unoccupied quote review.
Meshed is a trading name of Mesh'd Limited, authorised and regulated by the Financial Conduct Authority (FRN 1033248). We charge a flat 10% broker fee. This guide is general information, not legal advice.
Vincent Liu
Co-founder & CTO
