Is Your New Year’s Resolution to Renovate?
Happy New Year everyone. We hope you celebrated the way you wished, and the recovery was effortless! We are excited about what lies ahead in 2020, and in fact the next decade, and we are gearing up for another busy year, refreshed from our break and ready to roar!
If RENOVATION is on the agenda for 2020 – there are many things to consider prior to undertaking any works, alongside budget and design, ensuring you have the correct type of insurance cover is critical. Do not assume that Home and Contents will cover what you are undertaking; it may do, but this depends on whether there is any work that is structural and secondly, what your Home and Contents Insurer’s position is on renovating – Read your Product Disclosure Statement closely. Ring them for any clarification, because they all have a dollar value on works that if breached, you do not have cover, plus check that Public Liability Insurance remains in place on your site.
Using a Registered Builder: Notify your Home and Contents Insurer, ask and have the answers confirmed in writing about your coverage. Important: See and keep a copy of the builders, Construction and Public Liability Policy.
Renovating as an Owner Builder (Renovator): Check with your Home and Contents insurer, explain the project and the true value of the works as per what a builder would charge, plus ask “what am I not covered for when renovating and has anything changed in the level of cover?” Important: Get it in writing!
We cannot stress enough: read your Home and Contents Product Disclosure Statement closely as there are conditions that you need to be aware of that can void your policy while renovating. If your Home and Contents Insurer will not cover your home while the renovation is in progress then you will need Owner Builder Construction and Public Liability Insurance to cover your existing home and the renovation for fire, theft, storm, water and flood damage, vandalism and at least $5 million Public Liability plus contents.
Planning to use friends or relatives? We recommend you take out Voluntary Workers Insurance which is inexpensive and protects your loved ones. Whatever happens, don’t take the risk of not insuring or underinsuring your existing home, renovation and contents.
On a Final Note: At this time, we would like to acknowledge the hard work of the firefighters and other emergency service workers across the nation continuing to battle catastrophic fires, particularly severe in southern NSW and Victoria; property has been lost, and even worse lives have also been taken. Our thoughts go out to those who have suffered loss at this difficult time.