The T.V Shows on renovating gives the impression that anyone can do it successfully, but the one thing that is NOT mentioned is Insurance.
A recent article by Allianz Australia highlights the fact that if you DIY, owner build or use a Registered Builder you need to have the correct Insurance in place to protect your biggest investment – Your home while being renovated.
While everyone wants the perfect job, renovations cost money & homeowners need to make sure that they are fully covered while their home is being renovated.
A number of points Homeowner/Renovators need to be well aware of before starting.
* In the BUILDING ACT there is no such term as DIY or Renovator, the construction is done as an Owner Builder or by a Registered Builder.
* Policy Limits apply to all Home & Contents Insurance policies (Which can be as low as $2000, $20 000 etc) which once you exceed the limit, you need to obtain Owner Builder Construction & Public Liability Insurance or your builder needs to cover your Home & Renovation.
* Most Builders do NOT cover your existing home and definitely not contents.
* Inform your Home and Contents Insurer and get the answer in writing. e.g. Am I covered for water damage from the renovation entering the existing part of the home? Is Public liability extended to the property?
* If you neglected to obtain a Building Permit, the Insurer will treat your extension as illegal building works – excluded from the policy.
This is just some of the queries the Home Owner needs to be fully aware of prior to starting the job.