With multiple new Home Ownership Scheme (HOS) estates gradually being handed over in 2026, the biggest headache for homeowners planning renovations is often not the design style, but how to avoid legal liabilities arising from the construction.
Many homeowners mistakenly believe that as long as the renovation company has purchased employees compensation insurance (labor insurance), they are completely safe. However, they overlook the fact that if the project damages the buildings public facilities or the downstairs neighbors unit, the affected parties will usually claim compensation directly from the unit owner.
To mitigate such risks, which can easily amount to hundreds of thousands of dollars, the only solution is for the homeowner to purchase renovation insurance that includes “third-party liability” coverage. Below is a breakdown of the 5 major strategies and a premium comparison for new HOS flat renovation insurance in 2026.
1. Clarifying the Core Coverage of Third-Party Liability Insurance
Third-party liability insurance primarily covers the legal compensation a homeowner must bear if an accident during renovation results in “third-party bodily injury or death” (e.g., neighbors, building visitors, or management staff), as well as “third-party property damage” (e.g., a burst pipe flooding the downstairs unit, or damaging the buildings elevator). Some insurance policies even cover the legal costs arising from such incidents.
2. Renovation Insurance is Not the Same as General Home Insurance
Many homeowners assume their existing home insurance is sufficient. In reality, general home insurance usually has “renovation period” restrictions (for example, it may only cover minor refurbishments lasting up to two months and costing under HK$100,000). Since a full renovation of a new HOS flat often takes several months and costs hundreds of thousands of dollars, it is mandatory to purchase specialized “renovation (contractors all risks) insurance” to obtain comprehensive protection.
3. 2026 Premium Reference: Flexible Options Starting from One Thousand Dollars
The premium for renovation insurance on the market is mainly calculated based on the “total project cost,” “renovation duration,” and “third-party liability coverage amount.” According to market references in 2026, a third-party liability renovation insurance policy with a coverage amount between HK$10 million and HK$20 million typically has a basic premium ranging from roughly HK$1,200 to HK$2,500. Spending just one or two thousand dollars to transfer millions in liability risk offers an exceptionally high cost-performance ratio.
4. Scaffolding and Exterior Works: The Key to Premium Differences
New HOS flat owners frequently need to replace aluminum windows or install split-type air conditioners, which involve high-risk “scaffolding works.” When comparing different policies, it is essential to confirm whether the terms cover scaffolding. Some budget-friendly policies list exterior and scaffolding works as exclusions. If additional coverage is required, the premium may increase by several hundred to over a thousand dollars.
5. Comparing Deductibles (Excess): Dont Just Look at Low Premiums
In addition to comparing premiums, homeowners must also pay attention to the “deductible” (the amount you must pay out-of-pocket when making a claim) of each plan. For example, some policies have a water damage deductible as high as HK$10,000, while others only require HK$5,000. When making a choice, you should weigh whether a lower premium with a higher deductible, or vice versa, better aligns with your risk tolerance.
It is recommended that homeowners request quotes from different insurance companies and carefully compare the terms at least one to two weeks before the renovation begins, ensuring the policy is in effect before allowing the contractors to officially start work.
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