14 April 2020

Covid 19 - Frequently Asked Questions

By Renovation Plan
What happens if my builder enters insolvency due to the coronavirus pandemic?

This isn’t something which is covered under Renovation Plan as we only cover physical loss or damage to the property & works, not financial loss.

My works have come to a halt due to the coronavirus. Am I still insured?

If you are insured on our Premier Plus policy there is a 60 day cessation of works clause, this means that works can pause for up to 60 days – subject to our unoccupancy condition. On our Standard & Premier policies, there is a 30 day cessation of works clause.

If you are unable to comply with these clauses we can increase the cessation of works clause for up to 90 days, upon referral to underwriters – providing the works have stopped as a direct result of the coronavirus. If you would like to apply for this extension then please complete our online form.

My works have restarted, but what if there is a second wave of the coronavirus and they stop again?

If your works have restarted and the Covid-19 endorsement been applied, please notify us so that we can remove the endorsement. If your works are delayed again as a direct result of Covid-19, we can reapply the endorsement so that you benefit from the extension in cover during that period.

My contractors want to start work on site again, am I responsible for ensuring they can work safely on my project?

If you are self-managing your project you may have a duty of care to any Bona-Fide Subcontractors and especially Labour Only Subcontractors. However, if you have a single main contractor managing your project and site, it is their responsibility to make Health & Safety arrangements for social distancing on site for their employees & sub-contractors.

My works have restarted, but my project has been pushed back by 2 months. I only have 6 weeks left on my policy, what should I do?

All of our policies can be extended with a minimum extension term of 1 month. A few weeks before your policy expiry date we will contact you to request an update on your works and an estimated completion date, we will then send over a quote to extend your policy. This is calculated on a pro-rata basis to your original premium.

Do we need to update you with any information now that our works are up and running again?

Please notify us if we had already applied the Covid-19 endorsement so that we can remove this. You also need to check your existing Statement of Fact and notify us if there have been any changes to the information your policy has been based upon, particularly the sums insured for both the property and the contract works.

My works have stopped as a result of the lockdown so I cannot comply with the unoccupancy condition of checking the property internally every 7 days. What should I do?

This lockdown period is classified as Government legislation which prevents you from fulfilling this condition, therefore there will be no penalty for not checking your property during the lockdown period. Once the lockdown restrictions have been lifted, you will be expected to fulfil this duty as per the terms of the policy. If the project is within or adjacent to your current place of living however, we would expect the above duty to be fulfilled.

I’m due to start my works next week, can I still take out a new policy with you?

Yes, but works must start within 30 days with our Standard or Premier policy or 60 days with our Premier Plus policy.

With a Standard or Premier policy, if works stop for more than 30 consecutive days, cover is restricted to Fire, Lighting, Explosion, Earthquake, Aircraft (FLEEA) only.

With a Premier Plus policy, cover would be invalidated if the works stopped for more than 60 consecutive days unless we have agreed otherwise.

Please let us know if works have stopped completely as we can still help.

What happens if the insurers of Renovation Plan go into bankruptcy due to the current circumstances?

This is an extremely unlikely event . Renovation Plan is underwritten by AXIS at Lloyd’s of London. Lloyd’s capital structure, often referred to as the Chain of Security, provides excellent financial security to policyholders. Its capital structure has three elements, referred to as links, which all fall in to place should any of the Lloyd’s syndicates fall into financial difficulty.  If a claim cannot be met from the first two links, the funds are taken from the third link which is Lloyd’s central assets. By having this reassurance, if any of the syndicates do suffer financial difficulty, it is fully backed up by Lloyd’s.

It’s not my fault that the works have been delayed, why should I have to pay to extend my policy?

Although we appreciate that the delay in works is out of your control, we are still providing full cover for your property, including partially complete works & liability cover. There will be no extra charges applied and our extensions are still calculated on a pro-rata basis. We are doing all that we can to assist our clients when they notify us there has been a break in the works due to the cornonavirus, but we are unable to waive our premiums.

Insurers are unable to extend cover for free.  In the event that a claim occurs whilst the works have temporarily stopped you would still require a claim payment.

Can I put my policy on hold whilst the works are on hold?

No, the policy will run until the expiry date. If you are insured on our Premier Plus policy, we have a 60 day cessation of works clause which means works can pause for up to 60 days subject to our unoccupancy condition. On our Standard & Premier policies, this is 30 days. Please let us know if you are unable to comply with these clauses.

If you no longer require any cover you can cancel the policy, and providing there have not been any claims or incidents we would provide a pro rata refund of the premium – subject to a £25 cancellation charge

My contractors are not working on site at the moment due to the coronavirus. Does this invalidate my policy?

We do not define what works are on our policy, so although structural work may be paused due to contractors not being on site, if you are carrying out any works yourself including clearance or internal work, or securing the site, then this will be classed as works. However, if there are no works at all, please refer to the question regarding works coming to a halt and make sure you let us know.

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