Yes & No.
Assuming you have decided to renovate/extend your home and have or are about to contract with a builder to do the work. What Insurance does the builder need or the homeowner need to buy insurance?
Most builders take out an Annual Construction & Public Liability Insurance policy, for an amount they estimate to be the value of the building work, they will need the following 12 Months. This is for actual building work. Some may take out a job specific policy which is required for each job they do.
Unless specifically asked by the builder, the insurer policy does NOT cover the existing home!
So, to answer your question, the builder can endorse (add) the policy to include your home, but most do NOT want to do this and unless the homeowner askes (get a copy of the policy) The Homeowner will not be covered.
Your Contents will definitely not be covered regardless of the builder endorsing (adding) the existing home to the policy.
As the leading underwriting agency in this area, we have been asked to find a solution – & we have!
Renovators Home & Contents has been developed to fill the gap of homeowners using a registered builder to renovate their home and cover the existing home, contents & the renovation.
How it works
To simplify the process, either the builder or home owner needs to purchase a joint policy that will cover the existing home and renovation, with an optional contents cover (Conditions apply)
If the Homeowner purchases the policy – Job specific Construction & Public liability policy plus existing home &/or contents cover. The Homeowner needs to discuss this with the builder as he will probably have an annual policy and will have the renovation as part of that policy, so the homeowner needs him, to exclude this renovation from his policy.
This unique and exclusive product has been difficult to assemble because it is the builder’s responsibility to provide Construction & Public liability Insurance for the renovation, but the process described was the only way forward with our insurer, to provide coverage.