Renovating high-net worth homes: what to be aware of and how to stay ahead of it

Renovating a high-net worth property is rarely just a bigger refurb. You are often dealing with complex contracts, tight lender conditions, heritage constraints and heightened insurer expectations around security and water protection. The good news is that most of the pain is avoidable if you plan thoroughly for insurance and risk early, not when the builders are already on site.

Challenges to expect

1. High-net worth insurers may allow a certain level and value of works without notification, but those allowances usually come with caveats. A common one is that the allowance may not apply if your building contract requires joint names insurance, which is often triggered under JCT-style contracts. We often find that projects go over budget and time, and if you exceed that notification threshold, placing cover half‑way through can become difficult or even impossible.

    

2. If the home is listed or in a conservation area, even small changes can require listed building consent, adding time and cost. Unauthorised work can lead to penalties that are not insurable.

    

3. According to Confused.com, escape of water is a leading cause of claims, at an average cost of £5,708. Insurers increasingly expect you to cover centralised risk such as installing leak detection with automatic shut‑off, having monitored alarms and sufficient fire protection.

    

4. If you’re taking out significant finance on your property to fund the renovation, your lender might have quite strict requirements in terms of the perils that must be insured. They may also require to be named as co-insurers on large projects, which is something the standard market struggles with.

Top tips to take away

• Treat arranging insurance as part of the build plan, not as an administrative extra. Confirm early whether your works trigger joint names requirements or exceed any “non‑notification” limits. Doing so midway through may leave you uninsured.
• Build in time and contingency, especially for listed homes. Listed projects can be delayed by consent processes. Keep rebuild and contract works values aligned to avoid underinsurance, particularly where luxury finishes or listed features drive ‘like-for-like’ costs.
• Ensure your design risk management is complete before building starts. Chat with the architect to plan the installation of wiring, sensors, shut‑offs and monitoring while the property is stripped back, not after the finishes go in.

Craig Woolley, Underwriter, from Renovation Underwriting says: “When it comes to high-value renovations, if you wait until the build is under way to sort insurance, you’re already negotiating from a weaker position. Specialist cover will ensure there are no gaps between the contract, the lender and the insurance, keeping your project moving when something goes wrong.” 

The insurer’s perspective: what “good” looks like

Renovation Underwriting offers specialist single comprehensive renovation policies covering all aspects of the project. Talk to your Adler Fairways contact or James Curnin in the Private Clients Team to find out more.