The 101 on renovation cover

Understanding renovation cover

Getting ready to renovate, but not sure if it’s worth getting insured? We know that some insurance can be hard to understand, so here’s the 101 on renovation cover and why it’s worth covering your biggest asset.

What is renovation cover?

Renovation insurance keeps the part of your home you’re working on covered during renovations or alterations.

You should consider buying renovation cover for any structural changes you make to your home. Things like: extensions, removing or moving load-bearing walls, a new swimming pool or spa area, a new deck or any work that requires consent from the council. We call these major alterations.

If you’re only doing cosmetic changes, like: painting walls, laying new carpets, changing your bathroom taps or light switches – we call these minor alterations. For premium house insurance policy holders, minor alterations are covered up to $50K. Check your policy documents for more details.

What’s covered by house insurance?

As well as any minor alterations, your house insurance also covers you for:

• Any damages that happen due to cosmetic changes. For example, spilling paint on your carpet – your house insurance will cover it.
• If there’s a natural disaster, like a flood, your house insurance covers your home as it currently stands.

And once your reno is complete, you can re-adjust your sum insured. This way any new additions will be reflected in your rebuild costs if you need them.

What’s covered by renovation insurance?

As well as major alterations, your renovation cover protects you for things like:

• Loss or damage to the parts of the house being worked on under the house renovation contracts.
  E.g. if you have a new extension built and someone breaks in and damages it – your renovation insurance will cover it.
• Loss to other parts of the house caused by renovations.
  E.g. a fire starts in your new extension and spreads to the rest of the house – your renovation insurance covers it.
• Loss of any materials used onsite that have been bought specifically for the renovations, either by you or your contractor.
  E.g. your builder leaves the materials for your new extension at your property and it gets stolen – your renovation insurance covers it.

Just note, some larger construction firms might already have cover. This means your property might already have the cover it needs, so always ask before you buy.

If they don’t have cover, getting it means your project can keep moving without a hitch if there’s an unexpected issue.

E.g. if any materials (like wood) get stolen, having renovation cover will help prevent delays in getting replacement materials and the work can keep on going.

What’s not covered by renovation insurance?

There are some things your renovation insurance doesn’t cover. This includes:

• Theft of contractors’ tools and equipment left onsite – this should be covered by the builder’s  business assets insurance policy.
• Faults and defects in materials, workmanship or design.
  E.g. if your builder installs a building product but didn't follow the manufacturers specifications for that installation - then that's faulty workmanship.
• Damage to goods or materials in transit to or from the site.

Check the policy wording for more details of what is covered and what’s not.

So is it worth it?

That’s up to you. Renovation insurance is a smart way to keep your home covered just in case, especially when it’s at its most vulnerable during renos.

Plus, renovations are expensive, so it’s wise to protect your investment and plug the gap your house insurance doesn’t cover while work is being done.

Want to know more? Head to our renovation cover page for more information. Or if you’d like to speak to one of our team, call 0800 379 372.