Whether you’re making a few upgrades around the house or you’re undergoing a full-blown renovation, when things change around the house your home insurance should too.
Building and contents insurance can be tricky to navigate at the best of times, let alone when you’re making changes around your home. Read on to learn more about how to maintain your home insurance policies during and after a renovation.
Insurance considerations during the renovation
Thinking about upgrading a few things around the house? Renovating is a great time to revisit your insurance. Before you get stuck into your renovations it’s well worth checking your home and contents insurance to make sure that you’re covered should things take a turn while you’re in the middle of your renos.
When it comes to building insurance, there could be specific PDS exclusions that don't cover you during repairs or renovations. Some exclusions might relate to liability only whereas others are dependent on whether the property is open to the elements during the renovation process. Have a read of your PDS to see what you’re covered for and if you’re still not sure then reach out to your insurer to double check your policy. In some cases, you might be covered by your builder’s insurance, so have a chat with them to check whether their insurance covers the whole building or just the areas they’re working on.
Do you have to move out of your house while you’re renovating? Some insurers don’t cover your contents if you’re not permanently living at the property. You might even need to pay an additional unoccupied excess if you’re subject to an insurable event while your place is vacant. All policies and insurance providers are different, so the easiest way to figure out what you’re covered for is by having a read of your PDS.
If things are changing around your home, it’s worth dropping your insurer a line and updating them so you don’t get caught out should the unfortunate happen.
Insurance considerations after renovating
Once your renovations are done and dusted, update your insurer on the changes to the property so you’re covered in the case of an insurable event.
After wrapping up any upgrades or renovations it’s likely that the value of your home has increased, so it’s important to update your home insurance policies to account for these changes. If you’re not quite sure how much your home is worth post reno, it could be worth chatting to a builder or property valuer to get a professional appraisal or use an online Sum Insured Calculator. The real estate value and cost to rebuild are two completely different figures, so make sure you’ve got enough building cover just in case you need to rebuild in the future.
Have a think about what’s changed since you renovated your home. Did you add an extension, install a pool, add another bathroom or even change the roofing materials? Even though changes to property details like these might not seem like something worth notifying your insurer about, it’s the little things like this that can make all the difference to your home insurance. It always pays to be safe rather than sorry when it comes to updating your policy after any home renos, so be sure to share all the details with your insurer.
Did you add in a home office as part of your renovations? If you run a business from home or use part of the premise for business then it’s possible you need to take out additional business insurance. As always, check your PDS to see what you’re covered for.
The changes don’t stop there. If you’ve indulged in a few new pieces of furniture, electronics, home decor or anything in between since the renovation, then it’s possible that your contents insurance will need updating too. Use a household inventory checklist or a contents calculator to give you a rough idea of the updated value of your contents. Let your insurer know of any changes and check your PDS to see if you need to list any big ticket items separately for extra coverage.
Renovations are great for breathing new life into your home, but they’re also the perfect time to revisit your building and contents insurance policies. Before you get into your renos, make sure you check your PDS so you’re covered during the process and update your insurer on the changes once you’ve finished up.
If you’re keen to upgrade your insurance while you renovate or are looking to update your policy, you can start a quote today with Youi.