Home Renovation and Extensions – Understanding Insurance Requirements
When it comes to home and contents insurance, many if not most people want to make sure they’re adequately covered. After all, a home contains pretty much everything we own, use and value, so keeping our insurance policies up-to-date is always a good thing. However, it’s always good to re-visit these insurance policies when thinking about home renovation, extensions and second storey additions, just to make sure you’re adequately covered during the process.
Home renovations, particularly extensive ones, can be a big undertaking. Things that need to be considered are research, budget, time, convenience and any potential mess. One area potential renovators should always consider is whether their renovation is covered under their current insurance policy. Before the new renovation or extension is in full swing, it’s important to speak to your insurer about what will and will not be covered during any renovation period, not to mention afterwards. If you’re going to vacate the property during renovations for several weeks or months, public liability insurance may also need to be taken out due to accountability in case anything is stolen, damaged or destroyed while you are living away from the property. It will also cover you should somebody be injured at or near your building site due to negligence too.
Sometimes, a home and contents insurance policy can lapse after a couple of months if nobody is living in the property. Some policies also only accept a limited amount of damage to a property during the renovation process. Other potential risk factors that should be considered are any damage from rain or a storm due to parts of the house being exposed to the elements during renovation. There is even the chance that the home could be unintentionally damaged during the home building, renovation or extension process. These potential scenarios all need to be discussed with your insurer to ascertain whether or not you will be fully covered, and what you need to do to make sure that you are.
In addition to home and content insurance, a warranty against non-completion of the building contract should also be considered prior to works beginning. Unforeseen circumstances can sometimes happen, such as disappearance or insolvency of the building company, so you want to make sure you’re fully convered financially before getting underway.
Construction insurance is also available from many insurers these days to protect the home owner during the building process in case of any damage. Also known as site insurance, it covers fire and storm damage, as well as vandalism and theft. Some policies can also include public liability, professional fees, demolition and removal of debris costs.
If you are considering undertaking a building renovation or extension and are after more information about insurance and all these other small yet vital items that need to be considered during the process, contact us today.