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Renovating
How Do I... Protect My Home During and After a Reno?
Make sure you're covered for any nasty mishaps during and after renovating by keeping your insurance details up to date
In this practical series, we ask experts to answer your burning home and design questions. Here, Geordie Elliott, Allianz‘s property assessing manager for Australia, reveals what you need to know about insurance cover during and after building works.
Check your insurance
The last thing you want when you’re renovating is to have any hassles trying to claim something through your insurance. For peace of mind, check your home and contents policy before work on your property begins.
Your existing home policy should cover you for renovations costing up to $50,000. If you’re spending more than this, you may need to consider getting a separate construction policy. Keep a close eye on your spending too, in case it creeps above your policy limits (in our experience, most DIY reno projects tend to blow out by around 30 per cent). You should also let your insurers know if you’re planning to store any building materials on-site so they can be included in your cover.
Lastly, if the renovation increases the value of the property to more than your current policy limit, be sure to update the value on your policy.
The last thing you want when you’re renovating is to have any hassles trying to claim something through your insurance. For peace of mind, check your home and contents policy before work on your property begins.
Your existing home policy should cover you for renovations costing up to $50,000. If you’re spending more than this, you may need to consider getting a separate construction policy. Keep a close eye on your spending too, in case it creeps above your policy limits (in our experience, most DIY reno projects tend to blow out by around 30 per cent). You should also let your insurers know if you’re planning to store any building materials on-site so they can be included in your cover.
Lastly, if the renovation increases the value of the property to more than your current policy limit, be sure to update the value on your policy.
When should I contact my insurer?
Before you get on the tools. You should also keep the insurer informed if your plans change during renovations. If the project expands or gets scaled back, it’s important that your insurer knows about it.
Before you get on the tools. You should also keep the insurer informed if your plans change during renovations. If the project expands or gets scaled back, it’s important that your insurer knows about it.
What’s good to know?
You may plan to live in your property during construction, but renovations can be unpredictable so it’s worth checking your policy’s vacancy provision. Most insurers set it at 60 days, after which you won’t be able to make a claim on your policy.
If you do need to vacate, it’s a good idea to set yourself reminders so you know exactly how long the property has been unoccupied and you don’t accidentally miss the cut-off date.
You may plan to live in your property during construction, but renovations can be unpredictable so it’s worth checking your policy’s vacancy provision. Most insurers set it at 60 days, after which you won’t be able to make a claim on your policy.
If you do need to vacate, it’s a good idea to set yourself reminders so you know exactly how long the property has been unoccupied and you don’t accidentally miss the cut-off date.
What can I do to minimise the risk of needing to make a claim?
- Hire professional tradespeople for any complex jobs. Don’t be tempted to do the specialist work yourself.
- Renovate your property one room at a time.
Where do most of your claims for DIY renos come from?
As you’d expect, the big-ticket items such as electrics, plumbing and roofing. The takeaway here is to hire a professional for any specialist work. This way you’ll be sure that repairs and building work are done according to the building code.
All too often, people get caught up in the decoration and fit-out (the fun stuff) and don’t pay enough attention to the bones of their property. A prime example is plumbing, which can be a real problem in older properties. Don’t forget to check what’s between the walls and hidden from view, and make sure that your policy is robust enough to cover any potential risks, such as water damage.
A common post-reno blunder is homeowners failing to update the value of their home and contents insurance policies. When doing this, remember that your policy shouldn’t reflect the market value of your property, but what it would cost to rebuild.
As you’d expect, the big-ticket items such as electrics, plumbing and roofing. The takeaway here is to hire a professional for any specialist work. This way you’ll be sure that repairs and building work are done according to the building code.
All too often, people get caught up in the decoration and fit-out (the fun stuff) and don’t pay enough attention to the bones of their property. A prime example is plumbing, which can be a real problem in older properties. Don’t forget to check what’s between the walls and hidden from view, and make sure that your policy is robust enough to cover any potential risks, such as water damage.
A common post-reno blunder is homeowners failing to update the value of their home and contents insurance policies. When doing this, remember that your policy shouldn’t reflect the market value of your property, but what it would cost to rebuild.
Do I need to check that my builder is insured too?
Yes. Check your builder has public liability insurance that, among other things, covers them for on-the-job injuries and damage to materials or work. If an individual contractor doesn’t have public liability insurance, they need to be working under a builder who does. For example, a tradesperson working for a builder does not need to have public liability insurance, but a tradesperson working independently does.
Yes. Check your builder has public liability insurance that, among other things, covers them for on-the-job injuries and damage to materials or work. If an individual contractor doesn’t have public liability insurance, they need to be working under a builder who does. For example, a tradesperson working for a builder does not need to have public liability insurance, but a tradesperson working independently does.
How can I keep my home secure during the reno?
- Keep the front yard tidy and tools locked up and out of sight. This will visually deter burglars.
- Check your plumbing is in a good state of repair, especially under-sink flexi hoses. Replace frayed hoses to avoid plumbing disasters.
- Consider a self-storage solution for any favourite pieces of furniture that would be hard to repair or replace.
- Always know who has your keys. If you’re using multiple tradespeople, consider installing an external lock-box with a code so that you don’t have to leave the house unlocked or get multiple keys cut.
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Did you find this story useful? Tell us in the Comments section below. And don’t forget to like this story, share it and save the photos. Join the conversation.
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Find a builder near you
But creating your dream home is about more than just choosing the perfect design, fixtures and finishes. You also need to make sure you’re properly covered during construction and after it’s been completed. Here’s how.