Why You Should Not Solely Rely On Your Contractors Insurance Policy

The total collapse of two buildings (from roof to ground level) in Chelsea, London this week has drawn attention to the necessity of having your own renovation insurance policy in place, on top of your contractors insurance. The properties were thought to be worth around £4,000,000 and were reportedly, undergoing work to build a large basement to convert the property into one. Fortunately nobody was thought to have been living in the buildings at the time and no injuries have been reported however the nearby houses were evacuated.

The Party Wall Act (1966) plays a very important role in these destructive collapses because this act makes you responsible in England and Wales for damage that your project could do to your neighbour's property. Understanding this act is especially important for terraced houses who have neighbours on both sides and therefore are at higher risk.

Examples of a party wall include:

• Walls separating terraced houses
• Walls separating semi-detached houses
• A structure that leans against a wall that is owned by the other neighbour
  

The Act prevents building work undertaken by one neighbour from undermining the structural integrity of the shared walls with neighbouring properties. The Act is also designed to avoid and mitigate disputes that could arise with neighbours. If you plan to carry out work on a party wall or structure then it is crucial that you provide your neighbour with a Party Wall Notice.

Types of work that the Party Wall Act covers:



• Converting a loft (cutting into boundary walls to support new beams)
• Underpinning
• Increasing thickness of a wall
• Extending above a level which lies on the boundary
• Building a new wall for an extension
• Excavation work for new foundations
  

Events like this display the necessity for a comprehensive High Value Property Renovation insurance policy which many people are unaware of. Property owners in London, where values are high and proximities are close, should be especially aware of having their own renovation insurance policy rather than just relying on the builders or contractors insurance, to ensure that you are accurately covered in the event of a loss.

A total loss can be caused by a variety of factors, some of which could be affected by COVID-19:

• Worsening weather conditions as we move into winter.
• The impact of COVID-19 on work forces (reducing the number of experienced workers).
• Added pressure to complete projects affected by COVID-19 could result in work being rushed.

I am sure you can understand why this example is a valid reason to why you do not solely rely on your contractors insurance. Please contact us if you wish to discuss more about this specialist renovation insurance.