How do Home Improvements or Renovations affect your building insurance?

We have discussed sectional title and townhouse insurance on this blog. We would also like to focus on building insurance and how improvements and renovations affect building insurance.

Many have decided to rather purchase an old property at a good price than to build a new home. Many of these homes however require attention and are in urgent need of renovations and upgrades.

What do these property owners need to know about insurance when performing these improvements and renovations?

CIA Building Insurance Specialists provides some important insights:

– Many people employ approved building contractors to undertake and manage a renovation project.
– Where a contractor is employed the contractor will traditionally have an Contractors All Risk (CAR) policy in place which would include contract works, Employers Liability, Public Liability, hired plant etc. Please ensure that this cover is in place before commencing with the project.
– Due to the cost savings many people are opting to self-manage renovations.
– Where renovations are self-managed the impact of these alterations on your building insurance cover must be considered.
– In the course of erection and/ or completion, alteration and until final completion of the contract the insured perils under your building insurance will be amended and cover restricted.
– When attempting a DIY project the Insurer should be notified and the restrictions in cover noted.
– An example of an uninsured incident which can occur would be unwittingly drilling through a water pipe whilst installing a new shower, sink or cupboard.
– After renovations, the value of the property will have increased and it is essential that your building sum insured is adjusted to include these improvements.
– Built in kitchens and revamped bathrooms for example form a part of your building sum insured. Upon completion of these projects the sum insured of the entire building must be increased to the new replacement value.
– When dealing with repair and maintenance work to buildings, property owners, body corporate trustees, and managing agents must familiarise themselves with and at all times comply with the Occupational Health.

[Info with recognition to CIA Building Insurance Specialists]