Property Under Renovation Insurance for commercial buildings
Cover for commercial buildings while they are refurbished, stripped out or converted, whether empty, partly let or still trading. Compare cover through brokers who insure existing structures during works.
- Existing structure and works insured together
- Cover whether the building is empty, part let or trading
- Liability and non-negligent damage to neighbours available
Reviewed October 2026 by the MyBusinessComparison.com editorial team
What is property under renovation insurance?
Property under renovation insurance covers a commercial building while it is being refurbished, repaired or converted. It insures the existing structure and, where needed, the new works against fire, storm, theft and other damage, along with the owner's liability, during a period when ordinary property policies restrict or exclude cover.
It is a step on from unoccupied property insurance. An empty building with nothing happening inside is a fairly static risk. Once contractors start stripping roofs, cutting steel or bringing in materials, the chance of fire, theft and water damage rises, and most insurers need to be told and to agree terms before work begins.
For new builds, or demolition followed by redevelopment, property developers insurance is usually the better fit.
Property under renovation insurance at a glance
- Suits
- Owners refurbishing, repairing or converting commercial buildings
- Insures
- Existing structure, works, materials and the owner's liability
- Occupancy
- Empty, partly let or still trading during the works
- Insurers ask for
- Scope of works, contract value, programme and contractor details
- Key conditions
- Hot work permits, site security and regular waste removal
- Ends when
- Works finish and the building returns to standard cover
What does property under renovation insurance cover?
Cover depends on who the building contract makes responsible for each part. These are the sections owners usually arrange.
Existing structure
The building being worked on, insured against fire, storm, flood, theft and malicious damage during the works. Many building contracts for existing buildings make the owner responsible for this.
The works and materials
New work, materials on site and temporary works, under your policy or the contractor's. Check the contract so the works are insured once, not twice or not at all.
Read more about contractors' all risks insurance
Joint names cover
Insurance in the joint names of owner and contractor, which many building contracts require so either party can claim without a dispute between insurers.
Property owners' liability
Injury claims from passers by, tenants and visitors on or near the site, sitting alongside the contractor's own liability cover.
Read more about public liability insurance
Non-negligent damage to neighbours
Protects the owner against claims when an adjoining building is harmed by settlement, vibration or weakened support during the works, even though nobody was negligent. Some contracts make it a requirement.
Loss of rent and delayed income
Rent lost if insured damage during the works delays reletting, and with some insurers, income lost because insured damage pushes back completion.
Read more about business interruption cover
Hot work and fire risk
Cover that allows welding, cutting and roofing work, usually on condition that a permit system and post-work fire checks are followed.
Theft of materials and fixtures
Theft of copper pipe, cabling, boilers and new fittings from a site that is harder to secure while works are underway.
Other covers to arrange around the works
- Contractors' all risks: the contractor's own cover for the works they are building
- Plant and machinery insurance: hired machinery and access equipment if you are hiring it directly
- Engineering inspection: new lifts, boilers and plant that need inspection once installed
- Employers' liability: if your own staff carry out any of the work
- Environmental liability: where works disturb contaminated ground, old fuel tanks or asbestos
Who needs property under renovation insurance?
Any owner or tenant responsible for insuring a commercial building while work is carried out on it. These are the typical cases.
Starting from scratch? Ground up builds sit under property developers insurance. For buildings that are simply empty, see the commercial property and landlord insurance hub.
- Owners refurbishing offices between tenants: strip outs, new services and fit outs before reletting
- Retailers refitting their own premises: shop fit outs while trading or during a short closure
- Hotel and pub owners upgrading buildings: bedroom refurbishments and kitchen replacements, often while still open
- Owners upgrading industrial units: new roofs, cladding replacement and services in older units
- Property investors improving holdings: refurbishing buildings to raise rents or meet energy standards
- Owners restoring listed buildings: conservation repairs to roofs, timbers and stonework
- Freeholders carrying out major works: roof replacement, cladding remediation or structural repairs to blocks
- Converters of commercial buildings: offices, shops or warehouses being converted to another use
- Owners repairing after a major loss: rebuilding after a fire or flood, when the original policy needs adapting
How much does property under renovation insurance cost?
Insurers price renovation risks on what the works involve and how well the site is controlled. These factors matter most.
Scope of the works
Redecoration and new flooring barely change the risk. Removing roofs, structural alterations, hot work or underpinning change it a great deal.
Value of building and works
The rebuild cost of the existing structure and the contract value set the sums insured.
Length of the programme
Longer projects mean longer exposure. Delays and extensions should be reported so cover keeps pace.
Occupancy during the works
An empty building attracts theft and arson, while a trading one adds liability to customers and staff. Each is rated differently.
Contractor and site controls
An established contractor with hot work permits, site security and daily waste removal is viewed more favourably.
Building and location
How the building is built, how close the neighbours are, flood exposure and the area's theft and arson record are all weighed.
What property under renovation insurance does not cover
Most problems with renovation claims trace back to one of these gaps.
- Works started without telling the insurer, which can leave the existing building uninsured
- Defective design, materials or workmanship, and the cost of putting them right
- Losses connected to a missed hot work, security or waste condition
- The contractor's own tools, plant and liability, which they insure under their own contractors' policy
- Gradual deterioration, damp, and wear and tear uncovered by the works
- Delays caused by the contractor, planning or funding rather than by insured damage
- Ground up development or full demolition, which needs developers' cover
Renovation cover or standard unoccupied cover?
Empty buildings and buildings under works are often confused. Insurers treat them very differently.
| Feature | Renovation cover | Unoccupied property cover |
|---|---|---|
| Activity on site | Contractors working, hot work and deliveries | Nothing beyond basic maintenance |
| Typical cover | Wider cover, with conditions tied to the works | Often restricted, in some cases to fire, lightning, explosion and aircraft only |
| Works and materials | Can be insured alongside the building | Not covered |
| Neighbour damage | Non-negligent damage cover available | Not usually relevant |
| Insurer needs | Scope, contract value, contractor and programme | Vacancy date, security and inspection routine |
How to insure a building under renovation
Tell your broker before work starts. These details let the insurer agree terms in time.
Check the building contract
Who must insure the existing structure, the works and neighbour damage, and whether joint names are required.
Describe the works
Scope, contract value, start date, programme, and whether roofs, walls or structure will be opened up.
Name the contractor
Their experience, insurance certificates and how they control hot work, security and waste.
Explain the occupancy
Whether the building will be empty, partly let or trading while work goes on.
Plan the handover
Tell the insurer when works finish so cover returns to standard terms with an updated rebuild value.
Get cover in place before work starts
Describe the building and the planned works and a broker will arrange quotes before work starts.
Get a quoteProperty under renovation insurance FAQs
How much does property under renovation insurance cost?
It depends on the scope of the works, the rebuild and contract values, the length of the programme, whether the building is occupied, the contractor's controls and the location. Cosmetic works may change little, while structural work or roof removal can change the terms significantly.
Do I need to tell my insurer before renovation works start?
Yes. Most commercial property policies treat significant works as a change in risk that must be disclosed, and some restrict cover until terms are agreed. Telling your broker before the contractor arrives avoids finding out after a loss that the building was not covered.
Does my contractor's insurance cover my building?
Usually not the existing structure. A contractor's all risks policy normally covers the new works and materials, while the owner insures the existing building. The building contract sets out who insures what, so check it before work starts.
What is joint names insurance?
It is cover arranged in the names of both owner and contractor, so either can claim and the insurer cannot pursue one for damage the other suffers. Many building contracts require it for works to existing buildings. Your broker can confirm whether your policy can be set up this way.
What is non-negligent damage cover?
It protects the owner against claims from neighbours whose buildings crack or settle because of the works when nobody was negligent, so neither the contractor's liability cover nor yours would respond. It is bought for the length of the project, usually arranged by the contractor in joint names when the building contract asks for it.
Can the building stay open during renovation works?
Often, yes. Insurers will want to know how work areas are separated from staff and customers, how escape routes are kept clear and how dust, noise and deliveries are managed. Trading through the works keeps income coming but adds liability exposure.
What happens to cover when the works finish?
Tell your insurer the completion date, the final cost and any changes to the building, such as new services, extensions or a new use. The policy can then move back to standard commercial property cover with an updated rebuild value.
Is a building under renovation the same as an unoccupied building?
No. An empty building with no work going on usually gets restricted cover, while a building under works carries different risks from contractors, hot work and materials. Some buildings are both and need a policy that deals with each. See unoccupied property insurance for the empty side.
How do I get a property under renovation insurance quote?
Get in touch through this page well before work begins so a broker can agree terms in time. Have the scope of works, contract value, programme, contractor details, the insurance clauses from the building contract, rebuild value and occupancy plans ready.
Compare property under renovation insurance
Cover for the building, the works and your liability while a commercial property is improved, arranged before the first contractor arrives.