Renovation projects in commercial settings often bring unique challenges, particularly when a historic building is involved. It’s something our Underwriters see quite often when providing quotes and polices for our dedicated commercial product, Renovation Asset. In the latest in our Project Insights series, we share more on the transformation of a Grade II listed property into a VIP showroom for a luxury watch brand in one of London’s most prestigious retail districts.

With a £12 million renovation planned, we needed to ensure we designed cover that protected the heritage structure, accommodated multiple stakeholders, and place the appropriate level of cover for both the existing property and ongoing works.

This latest case of Renovation Asset in action highlights the importance of comprehensive, tailored insurance—from structuring joint policies for freeholders and leaseholders to mitigating potential financial risks through Advanced Loss of Rent cover.

Located between Piccadilly Circus and Bond Street, this high-end retail space was selected as the perfect setting for a leading luxury brand’s VIP showroom. With its listed status and prime position, the refurbishment was designed not just to enhance the building’s aesthetics but also to elevate the client’s brand experience.

The works themselves were primarily high-spec internal refurbishments rather than structural alterations. While there was no basement excavation or major structural work, the scope included luxury finishes, a roof terrace addition, and extensive interior enhancements—all of which required specialist insurance considerations.

A complex stakeholder landscape

One of the defining features of this project was the number of parties involved. The freeholder and leaseholder both had vested interests in ensuring the right insurance cover was in place, while the main contractor and various subcontractors needed appropriate protection.

To ensure full security, the Asset policy was structured to include:

• Joint insurance for the freeholder and leaseholder
• Coverage for the main contractor and all subcontractors
• Protection for the existing structure as well as the renovation works

This comprehensive approach minimises risk exposure, ensuring that any unforeseen issues—such as an escape of water event—would be covered without ambiguity over responsibility. The Asset policy also includes an increased excess for escape of water and a requirement for a water management plan to proactively mitigate such risks.

Advanced loss of rent: Mitigating financial risks

For commercial properties undergoing extensive works, loss of rental income can be a significant concern. In this case, the freeholder was anticipating a high level of rental income following completion.

To protect against the financial impact of project delays due to an insured event, the Asset policy incorporated Advanced Loss of Rent cover. This safeguard ensures that if a major loss—such as fire or flood—were to delay completion, the property owner would not suffer financially from lost rental income.

Efficient placement and ongoing support

Despite its complexity, this case progressed swiftly and smoothly. From initial inquiry in October 2024 to full cover in place by early November, the policy was structured and agreed with minimal friction—helped in part by a well-informed broker who had prepped the client on insurance expectations.

As with all our projects, our work doesn’t stop once the policy is issued. We conduct mid-term reviews to ensure that:

• Works are progressing as planned
• There are no unforeseen changes in cost or timescales
• Cover remains appropriate for the evolving project

For this commercial project specifically, a mid-term check-in is planned at the six-month mark to reassess progress and confirm if any policy adjustments are needed.

Why specialist insurance matters

This project underscores the importance of specialist renovation insurance. Had the client relied solely on a contractor’s policy or separate structures and works cover, they could have been left exposed to potential gaps in protection—particularly in the event of a claim involving multiple parties.

By choosing Renovation Asset, all stakeholders gained peace of mind knowing that:

✅ The policy covered all necessary parties
✅ Existing structure and works cover were aligned with contractual obligations
✅ Advanced Loss of Rent was factored in for financial security
✅ The insurance was structured efficiently, avoiding unnecessary admin burdens

Final Thoughts

With works well underway, this project is on track to transform an iconic London space into a prestigious luxury showroom. While challenges always arise in high-value renovations, the right insurance solution ensures that stakeholders remain protected—allowing them to focus on delivering a world-class retail experience.

If you’re a commercial broker or property developer working on a listed building renovation, commercial transformation, or high-value project, get in touch to find out how RU’s Renovation Asset policy can provide the specialist insurance cover you need.