Your home is where special memories are made. You protect it, you love it and you’re constantly improving it. But have you considered that during a renovation your home may not be as protected as you think?
Renovations can expose your home to a wide variety of hazards. For instance, if you are replacing your doors or windows, your home will be less secure while the work is taking place. It’s easier for burglars or vandals to break in or enter your home and its also easier for bad weather or rain-water to cause damage. Standard home policies, have a condition which requires that your home must be in habitable condition for insurance to be valid. Standard policies also are not designed to cover damage caused from renovation work. So if damage accidently occurs to a wall when knocking out the old door, that “damage” is not covered.
This is why Construction Insurance is so important!
Many people don’t realise that they need a special policy to look after their home when renovating or rebuilding. There are so many things that could happen during a construction project whether it be a major extension or a minor bathroom upgrade. You want to make sure you’re protected.
Home improvements, like installing a pool, are another example of when you should consider speaking to your insurance advisor about whether you require Construction Insurance. Construction Insurance doesn’t only insure your physical structures but also extends to protect you from some additional risks. Think of the liability you attract when you have a giant hole in your yard, materials everywhere, crew on your property, pipes and water issues etc… if your homeowners policy is not covering your building, it would also not be covering the liability arising out of essentially being the one who put that hole there! Your home insurance alone isn’t going to cut it.
Some contracting companies may be able to secure this insurance for you while they are working on your project, but you may prefer to arrange it yourself. Whoever it is that arranges the cover, it should be mutually agreed between you and your contractor and in the renovation contract. If you are planning your own renovations, even if it’s a small job, you should consider whether you need this insurance. Freisenbruch-Meyer suggest that big project or small, talk to your insurer first. Discuss your renovations and get advice on what you may need during this time – and after renovations are complete, when the value of your building has just increased through your labours & investments!
It may seem like your job is small or may only take a short period of time – but you need your home to be safe and secure. So make sure to protect it so you can continue to make memories in it for years to come!