Check Your Insurance BEFORE Starting Your Home Renovation

Renovation Insurance Essentials

Diving into a renovation project is always exciting, but before you start knocking down walls or picking out tiles, there’s a crucial step you shouldn’t overlook: check your insurance. 

Home remodelling projects, big or small, can come with unexpected surprises, and being prepared with the right insurance during renovation is key to a worry-free process. Let’s delve into what you need to know about insurance before you begin your renovation journey. 

1. Notifying Your Insurer is a Must

Keep Your Policy Valid

First things first, make sure to inform your insurer about your renovation plans. Failing to do so might invalidate your policy, leaving you uncovered during the renovation. Most policies require you to notify them of any significant changes to your property. It’s better to be upfront about your renovation plans than to face the stress of an unsupported claim later on. 

2. Think Twice Before Moving Out During Renovations

Understanding Your Policy Terms on Vacancy 

Planning to escape the dust and noise by moving out during the renovation? Hold that thought – your policy might lapse if your home is vacant for an extended period, often more than 60 days. It’s essential to check the specifics of your policy regarding vacancy to avoid any unwelcome surprises. 

3. Big Renovations Might Need Additional Coverage

Navigating the $50,000 Limit

Many standard home and contents policies don’t cover renovations that exceed $50,000. This is because extensive renovations can turn your home into a construction site, posing different risks.  

Beyond this value, you might also need to adjust your legal liability cover. If your renovation is a major one, it’s crucial to discuss extra coverage with your insurer. 

4. Update Your Policy Post-Renovation

Reflect Your Home’s New Value

Once the dust settles and your renovation is complete, don’t forget to update your insurance. Your beautiful upgrades might have increased your home’s value, and you’ll want to make sure your coverage reflects this new reality. Under-insuring your newly renovated home could leave you financially vulnerable in case of an incident. 

5. DIY Renovators, Take Note

Extra Cover for the Hands-On Approach

If you’re planning to get hands-on with your renovation, be aware that most standard policies won’t cover DIY work. You might need additional builders’ insurance to cover any part of the renovation you undertake. Always clarify with your insurer what’s required if you’re managing the project yourself or doing some of the work. 

6. Check Your Builder’s Insurance

Protecting Against Incomplete or Defective Work

Ensure that any builder or contractor you hire has their own up-to-date insurance. This is essential for protecting you against incomplete or substandard work. It’s a step often overlooked, but it’s vital to confirm that your builder’s insurance during renovation is active and covers the scope of your project.

7. Beware of Work Abandonment 

Understand the Implications of Inactivity

If your renovation work stops for more than 30 days, you might find yourself in a tricky situation insurance-wise. Most policies won’t cover damages related to prolonged inactivity on a renovation site. This risk is especially pertinent if you’re working with a busy contractor or during unpredictable weather seasons. 

8. Post-Renovation Selling: Consider Warranty Insurance

Cover Future Claims

Selling your renovated home? You might need Owner Builder Warranty insurance. This protects you against future claims from new owners if defects arise post-sale. It’s an often-overlooked aspect, but one that’s crucial for peace of mind when you hand over your keys to the new owners.

Contact Nouvelle About Your Renovation

Renovating can be a complex process, but having a clear conversation with your insurance provider can set the stage for a smooth experience. By understanding and updating your insurance coverage, you can embark on your renovation with confidence, knowing that you’re prepared for any mishaps or unexpected changes. So, before you swing that hammer, make that important call to get the right insurance during renovation – it’s your safety net in the exciting world of home renovation. 

As professionals, we know what we are doing regarding renovations. We know how to maximise the use of your space, design to reflect your lifestyle and renovate to budget and agreed time frames.  

Our state-of-the-art business management system, unique to Nouvelle, allows us to operate with a level of scheduling expertise that sets us apart from other providers. It takes the headache out of your renovation, so you enjoy your new space without the stress. 

If you enjoyed our post, let us know your thoughts on our Facebook Kitchen Renovation and Design Ideas group! 

If you have questions about your renovation or remodel and want to know how to make a statement in your home, contact us at Nouvelle.