Renovating looks easy on T.V. but the risks associated with renovating especially if you are not using a builder or Owner building and therefore are not required to obtain a building permit, can be hidden but can end up costing you a lot of money, hassles, and time.
Let me explain
· You may forget to contact your Home and Contents Insurer (H&C) to inform them of the renovation – this will negate any potential claim you may have during construction as it is a requirement of the Home and Contents policy be notified prior to commencement of the renovation – you have voided the policy.
· Check to see the policy limit (value) of the policy, this can be as low as $2000, $10,000… Once you have exceeded this amount, at builders’ rates, not at your and your mates cost, then you do not have cover.
· A Permit is required above a certain value of work (as per your state) or structural work is required, can be as simple as widening an opening for a new door/window. Illegal work, non-compliant with Building laws and regulations, will void your policy. e.g. – Turning garages, basements into habitable rooms. – Building too close to the boundary. – Gutters with no down pipes or connections to drains.
And a future major issue – unable to sell your home, may come up.
In Victoria, for example, Warranty insurance for Non-structural work above $16,000 is required upon selling for up to 2 years from completion.
Read your Product Disclosure Statement before starting, cost the job as if a builder was doing it and ring your Home and Contents Insurer and get it in writing.
NB. If they won’t cover your Home and Contents Insurer then call us, DIY renovators’ insurance is for you.
Are you using friends, relatives you need Voluntary Workers Insurance to protect them from accidents, read more here.