Builders' Insurance - is £1 million okay?

[BrightGoldenHazeintheMeadow]

We are about to engage a builder for some renovation work on our house. It is a small, old 3 bed. The plan is to extend into the garden – where we will put the kitchen – we currently have a galley kitchen. Also rewiring and general refurbishment. The builder has builders’ insurance up to £1m with Direct Line which includes public liability cover. Looking at the Direct Line website, they offer insurance from £1-10 million. Any thoughts on if £1million is enough for the work we are planning? Thanks.

I'd imagine that worst case scenario, your house collapses or burns down. They need to pay for debris removal, get new plans through the council, pay for you to live elsewhere for 18 months, rebuild your house and pay for any resultant damage next door.
How much do your insure your house and it's contents for in total? If not more than £750k, I'd think you are OK. But I have no experience of having to make a claim like this.

Plus legal costs surely?

Plus the cost any damage to adjoining properties should the worst happen. Our building and contents insurer (NFU) wanted proof the builder had insurance but I can't remember if there was a minimum amount. Ours had £5m for a loft conversion and some internal structural changes.

You'll need to inform your own building insurer that you are having work done anyway, so its worth asking them if they had any minimum requirements.

And also any potential personal injury claims if you or someone else is injured as a result of poor work.

Thanks very much notafraid, Susu and MrsNot