Renovating your home - insurance trap for the unwary

Renovating your home is a bit of a kiwi tradition.  We even have a liking for adding on whole floors to the house.  If you’re involved in getting construction work done it pays to know exactly what your home and contents policies say about the cover provided during construction work.

Some policies are worded so that there is some cover during certain types of work and this extends not just to the current structure but also the new work done.  Others remove cover completely if certain work is done e.g. removal of the roof.  This means you need to arrange further contract works cover for the new work but also cover for the existing structure during the construction work as it may not be covered during the construction period (contents cover may also be in the same situation).

If you do not take out contracts work cover, the new work will not be insured.  If you do not take out cover for the existing structure, then it may not be insured either.  You need both in place and contents cover for the construction period.  It all depends on the particular wording of your contract so it pays to read the “fine” print carefully and seek advice if you are unclear on what is covered.

Alan Knowsley
Partner
Wellington