Don’t forget insurance while renovating

Towerhead of productsDavid Meaclem. Photo/Supplied Ruby Harfield

Renovating has becomea popular choice for people needingtochange theirliving situationbut many people are unaware of the importance of getting the right insurance cover.

Tower head of productsDavid Meaclemsaid a lot of insurerswill not coverrenovations in their standard house policy because it’s too risky.

For example, someonereplacing theirroof makes their house vulnerabletoweather events and someone whosebackwall is missing for a renovation is vulnerabletotheftoftools.

“You havetolet your insurer know if you are goingtoberenovating.

“It puts your houseatgreater risk.

“Tower will include minor renovations only in thestandard policy,such ascosmetic changes andregibbing an areabut anything more than thatwill need its own policy.”

Towerhas recently launched Contractworks – Renovationcover as the trendfor home renovations continuestospike.

Most insurers will only provide this sort ofrenovationcover to customers who have existing house insurance with them, he said.

“The insurer will probably aska number of questions about the type ofrenovation, how risky it is and its complexity.”

Renovation insurance should be in place before work starts or as soonasgoods arrive.

The percentage of people whoget this sort of insurance is lowerthan expected with 35% of homeowners thinking their current home insurance covers them, he said.

“Many people don’t know about it and are reliant oncontractorstolet them know, which doesn’t always happen.”

Research by Pureprofile,commissioned by Tower, shows that more than half (58%) ofKiwis believe it is bettertorenovatethan movehouse in the current market, if they’reneeding or wantingtoupgrade their living situation.

Towerchiefexecutive BlairTurnbull says Tower’s Contract works- Renovationcover has been designedtogive Kiwis peaceof mind when they undertake homerenovations.

“It’s concerning that one third (35%) of homeowners thinktheir house insurance covers them should something unexpected happen, and one third (36%) don’t know what they’re coveredfor.

“As constructioncosts soar amid record inflation, it’s now more important than ever tohave the right level of insurance protection if you’reaboutto get underway with a renovation.”

It’s also essential NewZealandersunderstand what thecontract theyhave in place with their builder orrenovationcompanycoversinterms of insurance,Turnbull said.

Different builders use different insurance products, and the right liability insurance for the project may not be in place.

AMIexecutivegeneral manager, distribution, Paulater Brakesaidin additiontoContract Works Insurance, it’s importanttoseek out qualified, licensed tradespeople who youcan trust to completethe jobtoa highstandard.

“Contract Works Insurance doesn’t provide coverfor faultyworkmanship, so investing in skilled andreputabletradespeople is well worth it.

“Contract Works Insurance is there to cover damage caused while your homeisstructurally more exposedtorisks.

“Under AMI’s Contract Works Insurance, you’ll also becoveredfor theftof building materials from site and thecostofconsulting a professional, likean engineer or architect, following significant loss or damage to the property.”

A recentAMI-IPSOS surveyrevealed that more than half of those who hadrecently made major orstructuralrenovationstotheir home (54 percent) did not updatetheir home insurance policy as part ofrenovations beingcompleted.

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