You must use a party wall agreement company.
I've used Jason Hughes at www.thepartywallcompany.co.uk. Do not let them start without one!!

Hi,

As an insurance broker who specialises in renovations and basement dig projects, I can comment from an Insurance perspective. Sadly, there's no insurance product that YOU can take out as third party to protect yourself in the event of damage to your property caused by your neighbours works.

However, I would make sure as a party wall condition that your neighbour takes out what is known as "Non Negligent Liability insurance", since the neighbour is responsible for any damage caused to your property as result of the works, where the contractors/architects are not found at fault. This insurance should give you some comfort knowing that if an incident did occur your neighbour would be protected financially and remedial works should be able commence immediately. As opposed to the lengthy legal disputes that often arise between neighbours in these circumstances.

Please get in touch if you have any further queries. Email is jrobinson@insurancetailors.com

Hope this helps. Good luck with everything.

So here is my input:

1. it's noisy and dusty but not as bad as when neighbours to side returns. Most of the work is underground so lets stuff flying around outside in the wind!

2. I'd video your house - there could be a lot of hairline cracks etc. Some people I know had to pay for their neighbours to have new wallpaper as it all ripped due to neighbours house shifting due to basement

3. keep on eye on dirt/dust on cars in the street. One neighbour of a friend (not of mine - I wish) asked the builders to wash all the cars of immediate houses every week due to dust

4. make sure party wall agreement is in place

5. make sure there is agreement on working hours - the digging out is noisy - you dob't want to be worken by it on Saturday

hope this helps