Kiwis love to improve their properties. The project, whether big or small, can have an impact on your house insurance. We've put together a few tips to think about before you start your renovation, so that you’ll still be covered.
Most house insurance policies don’t cover major renovations, but some will cover minor, non-structural work. Always check your policy to see what the limitations are before starting renovations.
As an example of Vero’s house insurance in action, the policy will cover you for non-structural work less than $25k, such as adding a small deck, but not for anything that involves adding on to the home or removing roofing or cladding.
Regardless of the type and value of your renovation works, it’s a good idea to let your insurer know you’re doing it. They will be able to agree to maintain your cover, or let you know if you may need any additional insurance cover.
If you are doing major works, you might need additional insurance like a Contract Works policy. This will work in conjunction with your normal home insurance and cover any damage caused by the renovation work. Most Contract Works policies will end once your renovations have a Certificate of Completion or Code of Compliance issued.
If possible, get Contract Works cover from the same insurer that you have your home insurance policy with. This makes it more likely that you’ll have seamless cover between your different policies.
If you are getting works done by builders or other tradespeople, check that they have Public Liability Insurance and find out what other cover (if any) they have. If there are any faults or issues caused by their work, their insurance could help out.
The information about any tradies’ insurance should be in their Conditions of Contract, so it’s a good idea to sort out your arrangements in writing.
If you’re doing any works to your home, it may change the amount of money you would need to rebuild your property if it is damaged or destroyed.
Once the works are complete, use an online calculator or a registered professional like a quantity surveyor to check your rebuild estimate, and update the Sum Insured on your house insurance policy so that you’ll have enough cover if anything happens.