INSURANCE

As you’ve invested a lot of your hard-earned dollars on your kitchen or bathroom renovation, and possibly even both, ensuring that your investment is protected through appropriate insurance is vital. 

From your renovation company

There are 3 types of insurance that are essential to ensure you have, at varying stages of your renovation.

HBCF – Home Building Compensation Fund

Previously known as Home Owner’s Warranty Insurance, is an important consumer protection for homeowners in NSW. It is mandatory in NSW and some other States for any building work over $20,000. It offers financial protection to the homeowner against financial loss caused by a builder’s failure to rectify or compensate for defective or incomplete residential building work. The duration of the cover is six years for major defects and 2 years for other losses from the date of completion. For further the information go to: www.sira.nsw.gov.au

Public Liability cover

Public liability insurance is designed for professionals who interact with clients or members of the public. It helps protect against claims of personal injury or property damage that a third party suffers (or claims to have suffered) as a result of your business operations. As there will be a lot of different people involved in your project, it is essential to ensure that your contractor/s has current and sufficient public liability cover.
The insurance that your renovation company has may cover the whole structure, or just the part of the renovation that they are working on. Be sure to find out these details early. Many insurers require you to advise them of any changes you are making to your property so that you aren’t out of pocket if something does happen. If you don’t notify your insurer that you are renovating, your policy may become void.

Workers Compensation Insurance

Contractors are also required to ensure their employees are covered by this insurance.
Always insist on seeing the certificate of currency for each of the above, as well as a current Contractor License.
Homeowner:

Home and Contents Insurance

As you’ve invested a lot of your hard-earned dollars on your renovation, ensuring that your investment is protected through appropriate insurance is vital. A leaky dishwasher may have the potential to ruin the stunning new solid timber flooring that you splurged on, and a fire in the kitchen could cause considerable damage throughout other parts of the home (not to mention a possibly even more devastating consequences). If disaster happens, you want to be sure that you’re financially covered.
Once the renovation is complete, contact your insurer to update your home and contents policy to ensure you’re adequately protected. The policy will need to reflect the new value of your home, which will have significantly increased following your renovation.
The extent of coverage can differ from insurer to insurer, and from state to state, so read your policy so that you’re clear on what’s covered and sometimes more importantly, what is excluded.