The Australian Bureau of Statistics has noted a surge in renovation applications and approvals, indicating a widespread trend among Australians to revamp their homes, especially in areas like kitchens and bathrooms.
However, unlike the captivating transformations depicted in TV shows like Grand Designs or The Block, real-life renovations entail unique risks for homeowners and their properties.
One commonly underestimated risk is the insurance coverage during the renovation process. Typically, standard home insurance policies do not extend coverage to renovations. In many cases, policies may be automatically canceled or impose exclusions, such as excluding claims for storm or water damage, damage to the existing structure due to construction, or public liability claims arising from the renovation project.
It’s crucial to ask your insurer pertinent questions such as:
- Is my home insurance still valid during the renovation, considering the construction value?
- If so, what are the specific exclusions applicable during the renovation period?
- Will the policy cover damages to the existing home caused by construction activities?
- Does the policy include coverage for public liability claims related to the construction, such as damage to neighboring properties or injuries to the public?
- Will my contents continue to be covered during the renovation period?
Before commencing any renovation work, it’s imperative to ensure clarity on these insurance matters. Always obtain written confirmation from your insurer regarding the coverage details.
For further information on safeguarding your home during renovations, reach out to your insurance broker today.
Important notice
This general information does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with your insurance broker or adviser as to whether these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. These insurances are issued by various insurers and can differ.
