Do I need to let my insurer know
Renovations are great for refreshing your home, adding space, and adding value to your property.
They can allow you to stay and live in the same area, whilst saving money on buying a new home and the hassle of moving to a new suburb. However, its important to notify your insurer as there may be some restrictions to your insurance cover while the home is being renovated.
Renovations may alter the security of your home
Depending on the renovations happening at your property, your insurer may need to adjust your insurance. If access to your home has been changed due to knocking down an exterior wall or replacing doors, it can increase the chances that someone is easily able to enter the home during this vulnerable time.
Things out of your control can happen
In the Northern Territory, we know all too well that nature doesn’t stop for anyone. Winds, rain, floods, storms can happen quickly, particularly in the wet season. Ensure that your building, as well as any additions, are covered, and understand conditions or limitations to your coverage while renovating. If you’re halfway through a renovation and something happens, you’ll want to know [L1] what situations your insurance covers.
Renovations can cause damage to your existing property
Builders or trades people will likely be entering your property during renovations, which means an increased risk that something could go wrong due to human error. Your plants could get trampled, things might get messy, spillages can happen, tools can get dropped in the wrong place, holes in the wrong walls, and the list can go on. In any case, it’s important to understand what the tradesperson’s insurance can cover and what your own building insurance can cover.
Know your insurance conditions
There can be some conditions within your home and contents insurance policy which are relevant when you are renovating. Make sure you’ve had a read through your Product Disclosure Statement (PDS) so you are aware of your policy coverage.
Renovations add value to your home
Once your renovation is complete, it can help to add value to your home. It might be a brand-new bathroom makeover, an updated kitchen, added rooms to the home or even a second storey. Whatever the renovation, ensure to tell your insurance company as you’ll need to re-value your home to help avoid a potential situation where you’re significantly out of pocket. if something does happen to the building.
Building and contents insurance whilst renovating
It is your responsibility to tell your insurer when you are renovating, extending, or demolishing your home, as they may need to adjust your building and contents insurance. This is the insurance which covers the home in which you live in, as well as any exterior buildings on your property such as the shed or garage.
A chat with your insurer to let them know you’re about to start renovations will make sure you’re aware of your policy coverage and clear up any other questions you may have.
To find out more about Building Insurance or to get a quote, contact our team on 8925 5901 or visit Home & Contents Insurance.
Important information:
This insurance product is distributed by Automobile Association of Northern Territory Inc ABN 13 431 478 529, an authorised representative of the issuer Insurance Australia Limited trading as CGU Insurance ABN 11 000 016 722, AFSL 227681. Any advice provided is general advice only and does not take into account your individual objectives, financial situation or needs (“your personal circumstances”). Before using this advice to decide whether to purchase a product, you should consider your personal circumstances and the relevant Product Disclosure Statement and Target Market Determinations from www.aant.com.au
