New Zealanders love a bit of D.I.Y, with many opting to do home renovations themselves rather than hiring help. Many of us don't think twice about mucking in to get it done or tackling a larger job over a few weeks around work and other commitments, calling in friends and family where required.
But, what does this mean for your insurance cover? First of all, if you require building consent this cannot be bypassed. It is always best to check with your local council whether or not any permits are needed and also if your project requires sign off by a Licenced Building Practitioner.
Protection? It is common practice to wear safety glasses and other protective gear but many don't consider financial protection. What happens if your building materials are stolen before being fitted to the home? The brand new kitchen or bathroom you are installing is half complete, you have all the items stored in your garage and they are stolen, leaving you out of pocket several thousand dollars? There are so many scenarios that could happen, too many to list or even consider but the fact is these losses do happen and that's when you need to make sure you have insurance in place to cover you.
A general rule, many insurers exclude cover for new structures or extensions to an existing dwelling or building. Others have limits on projects involved with building or renovating your existing home. Just like your project, there are many variables and leaving your largest asset unprotected during a renovation is a risk.
As the home owner you are responsible for the correct and adequate insurance cover so if a Contract Works policy is required for your renovation it is up to you to organise this. It is not wise to automatically assume that your existing Dwelling policy will cover your renovations.
We are always on hand to talk about your policy limits so whether you a planning a small job or a large project, have hired a professional or are tackling the task yourself we recommend giving us a call first. If we find that a Contract Works policy is required, we can step you through that process. A quick phone call now could save you thousands of dollars down the track.