A contract works policy usually includes combined property damage cover (damage to insured property) and public liability cover (damage to third party persons or property). Insurance of the works covers the works against damage or destruction, while under construction, and provides for reinstatement or reconstruction of works that are damaged or destroyed. Whatever cover the homeowner has, it is important to ensure any builder is appropriately insured.
No household insurance would normally cover such an eventuality, even if you had told your insurer what was going on. There are a number of damaging incidents that could occur over the course of a building project, and it is essential that everyone involved has the proper insurance as well as understands their liability and insurance responsibilities. Whether your building project is straightforward or complex, you should have a contract that clearly outlines the project’s essential details. In addition to explaining exactly how the work will be carried out, the contract should also state what insurance is required and who is required to have it—the employer, contractor or subcontractor.