Does building insurance provide coverage for damage incurred by DIY?
You can keep the costs of a renovation down by doing it yourself. In this way, the costs are limited to the material costs and the necessary free time. But beware! In case of damage, problems can arise with the building insurance. In the event of damage caused by a mistake during the renovation, the insurer can recover the damage from the person who rebuilt the house. What if you have renovated the house yourself?
You want to make the living room a few square metres larger. Outsourcing the work will cost you, say, €20,000. You work in construction and have done this job many times before, so you are going to do it yourself. Now the investment is limited to the cost of materials. For €6,000 the extension is ready. After the first heavy rainfall, it turns out that the extension is not completely watertight. The damage to your house amounts to €1,000. Fortunately, you have home insurance that provides coverage. But will the insurer pay out the €1,000?
Being able to present an invoice in case of damage
In the example of the extension, the insurer will find out, in the event of a claim, whether it is actually insured under the building insurance policy. In the case of a recently installed extension, the insurer will be interested in further information. If it turns out that the damage was caused by incorrect installation or finishing, the insurer will want to recover the damage from the builder of the extension. Did you build it yourself? Then the insurer may reject the claim if they can prove that the damage was caused by the renovation. However, there are ways of insuring this type of damage.
Choose the all-risk building insurance
Until a few years ago, the extra comprehensive building insurance was the standard coverage offered by insurers. Within this building insurance there is, among other things, coverage against damage caused by:
- Fire
- Storm
- Hail damage
- Lightning strike
- Falling trees on the house
Nowadays, people often opt for the much broader all-risk building insurance. The policy conditions do not include a list of what is insured, but rather a number of exclusions. If it is not excluded, it is insured in the building insurance. Damage caused by your own mistakes during the renovation is therefore insured.
How is the house insured during the renovation?
For insurance purposes, the insurer does not assume that you live in a construction site. Intensive renovation of a house takes extra risks. That is also the reason why damage during a renovation is not insured on the building insurance. For example, leakage damage in a building that is not yet watertight is not insured.
Hold the contractor liable for damages
Have you had your house renovated by a contractor? Then you can hold the contractor liable for the damage. The home contents insurance policy or the building insurance policy may provide cover for the damage. In that case, submit the claim to the insurer. The insurer will then take over the recovery process.
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