Make sure you have Construction and Liability Insurance and that you have not underinsured.
40% of people who claimed their Policy from the bushfires of last summer were in fact underinsured.
On top of this, we were inundated with calls for insurance in bushfire areas as the fires approached.
However, insurers had embargoed the bushfire locations and we were unable to offer cover to Owner Builders in the fire zones.
Don’t take the risk!
So what you must do is:
1. Take out Construction and Public Liability Insurance for your renovation/extension or New Home prior to the works starting – do it now! Don’t forget we can insure sheds, contents and existing structures.
2. Some Owner Builders underestimate the replacement costs or insure for a lower amount to save money on the premium. You need to also need to take into account that, in the worse case scenario, the costs of rebuilding will be greater, demolition and clearance costs, as these are often overlooked when purchasing a Policy.
3. Underinsuring – Why is it vital to ensure that you do not underinsure your Project is that for example, the home burns down and you have insured it for, lets say $300,000 but the insurer estimates it would cost $600,000 by a builder then you will only receive $150,000, as you are only half insured.
So besides keeping roofs and gutters clear and flammable material away from the house etc as your Fire Plan outlines. Buy the Construction and Liability Insurance Policy now and fully insure, it is better to be a little bit over in you cost estimation than below.