It’s important that all insurances are in place before starting home renovations or remoddelling work, and before starting construction of a new house. You don't want something to happen to your home before construction is complete, such as a fire, theft or damage from storms, only to find that you are uninsured. So it's imperative to check that existing policies won’t be adversely affected by the work. For instance, work in existing buildings may impact the security of the facility, or expose the property to the risk of damage from the weather or from flooding. You should discuss the work with insurance providers to ensure that the policy is not made void. Additional cover may have to be purchased to cover any shortfalls. Alternatively, the insurer may require mitigating measures to be installed, such as extra security, more firefighting equipment and so on.
Who is responsible for insuring your home during construction?
Depending on the contractual terms and conditions some insurances will be the responsibility of you and some the responsibility of the contractor. Most insurances are renewed annually so it’s good practice to have a schedule of all insurances so that action can be taken timeously before they fall due. In addition, when project conditions change, the contract value changes, or the project time-line is extended it will be necessary to advise the insurer, and in some cases additional insurance may have to be taken out. Failure to notify the insurer of changes could negate the policy.
What insurance should you consider for your home renovation project?
Insurance that needs to be considered includes:
Checking your contractor's insurance
Insurances provided by the contractor must be checked to ensure that they’re valid, that they’re of sufficient value and there aren’t clauses or conditions which are unacceptable or can’t be fulfilled.
It should be noted that insurance claims may be voided if:
Check your construction insurance
Like all insurance policies it pays to read the terms and conditions to ensure that the policy is suitable, that it will cover all the expected risks and it won’t be rendered null and void. When unsure, expert advice should be got from the insurance broker and other experts. Always get all questions answered in writing. In some instances certain events may require additional insurance, such as for flood or storm damage.
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I’m a construction professional, author of several successful construction management books, and a home owner. I’ve made mistakes in construction management, I’ve seen others make mistakes, but importantly I’ve had multiple successful construction projects and I’ve learned from the mistakes. I want to share these lessons and my knowledge with you.
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