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Renovation Wiki

Understand Renovation Project Insurance Types

There are three common types of insurance for renovation projects:

1. Construction Materials Insurance

2. Third-Party Liability Insurance

3. Employee Compensation Insurance (Labor Insurance)

To determine who should purchase these insurances, it's essential first to understand their specific purposes:
Construction Materials Insurance

This insurance primarily covers construction materials (such as flooring, tiles, wood, sanitary fixtures, etc.) against accidental damages or theft during the renovation process. The coverage amount is determined by the renovation cost, and the compensation value is based on a damage report issued by a notary. This insurance is typically voluntary and is usually taken out by the renovation company.

Third-Party Liability Insurance

This insurance covers legal liabilities and compensation for damages, injuries, or death caused to third parties during the renovation. Coverage amounts range from $5 million to $30 million, depending on the requirements of clients or the property management. Generally, property management requires homeowners to present insurance documentation before starting the renovation.

Employee Compensation Insurance (Labor Insurance)

This insurance covers the liability of injuries or deaths of employees during their work hours. While most renovation companies carry this insurance, if an incident occurs within the renovated unit, the homeowner, as one of the employers for the project, might also be liable for compensation. Therefore, DECOLAND advises homeowners to purchase this insurance as well to enhance protection.

The cost of insurance typically varies based on the project's scope and content. However, relative to the overall project cost, insurance fees are minimal. Homeowners are strongly advised to invest in these insurances to prevent significant losses over minor expenses. Additionally, it's worth noting that insurance typically covers only the tasks mentioned in the quote. To prevent misunderstandings, it's essential to ensure the quote details are clear and precise.


For many, renovation isn't an easy task. Aside from cost considerations, the process can be quite vexing for homeowners. That's where DECOLAND comes in with its all-in-one service approach. Whether it's finding the right renovation team, designers, getting accurate quotes, or managing the project, DECOLAND is here to support.

DECOLAND is here to help you solve all your renovation worries effortlessly!

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