Planning to renovate your home? Here’s how this could affect your insurance policy
Before you get started on any new (and exciting) home renovations, there are some important things to know about how renovations affect your insurance
If you are planning on giving your home the makeover you have always dreamed of, or are making some alterations, then it’s important that you let your insurer know because changes to your property may affect the cover you have and your monthly premium.
Most household insurance policies state that if you are doing any home renovations, then your home needs to remain occupied while it is insured because your house is less likely to be broken into when it is occupied.
Because of this, if you have to leave your home for a long period of time so that renovations can take place, then you need to inform your insurance company to see how this will affect your cover.
If you don’t, then your insurer might reject a claim made during this time - honesty really is the best insurance policy.
Here’s what you need to know about the impact renovations have on your policy
The value of your home may increase
Your insurance policy is set up to cover the replacement value of your home, and depending on what kind of renovations you make, such as upgrading your bathroom or kitchen or exterior of your home, then your monthly premium may change as the amount you are insured for will change with it.
That’s why you should let your insurer know about any significant upgrades made.
Make sure that your building plans are approved before you go ahead with the renovations as your insurer can reject your claim if your building does not conform to the required building standards.
Property24 mentioned that “This is vital for all properties, and even more so for properties close to rivers, beaches and dams, as the 50- or 100-year flood line could have an effect on the approval of building plans. You could also end up with a nasty liability claim from neighbours should your plans not be in accordance with building regulations.”
Damage to items during renovations
Ensure that no items are damaged during renovations as most insurers will not cover damage costs that happen during alterations.
You should also make sure that your house and belongings are protected from the elements because loss and damage caused by a storm (wind, water, hail or snow) when your house was being renovated will not be covered.
Make sure you have a good contractor
And any loss or damage from bad or faulty workmanship will not be covered - make sure you get yourself a good handyman or builder!
It is also important for you to make sure that your builder has insurance for his workers. Contractors need to ensure that their builders are covered by the Occupational Health and Safety Act and the Compensation for Occupational Injuries and Diseases Act.
By using a reputable (well known) contractor, this could save you any trouble in damages and insurance issues.
Be upfront and honest
Insurance companies will appreciate full transparency and honesty about any changes that you make to your home that could affect your household insurance.
It will also be an added bonus for you in knowing what you are and aren’t covered for when it comes to any renovations taking place.
The main points to keep in mind are:
● Let your insurer know about any renovations
● Make sure your building plans are pre-approved
● Renovations might change the value of your home and monthly premium
● Make sure your house and contents are well protected against the elements
● Ensure you have a good contractor
If you are unsure about your renovations and how they could affect your household insurance, then why not give your insurer a call and find out exactly what you need to know about your cover so that you don’t have any unexpected surprises when it comes time to claim.
We are always happy to hear from our clients and our awesome chat function in our app can help you reach us when it suits you!
Yours in hassle-free household insurance,