Have you caught the renovation bug? You’re not alone. Many Australians are renovating like never before rather than purchasing a new home – thanks to the growing cost of living plus rising house prices and interest rates.
In all the excitement of planning a renovation, it’s easy to forget about updating your insurance policy. Here are some steps to take to ensure your newly upgraded home is covered, not only during renovations but long into the future.
Understand your cover
It’s easy to let insurance cover slip your mind or to assume your current building and home and contents policy will cover your renovations. What you might not know is that there could be conditions within your current policy which become relevant when you are renovating. For example, if you vacate your home during construction for more than 60 days, your policy may not cover you.
To better understand your cover, read your Product Disclosure Statement or even better, get in touch with us or your insurance provider today.
Get in touch
Call us or your insurance provider as soon as reasonably possible to let them know you’re renovating! In the case of Police Credit Union Home Insurance, if you’re planning a construction, alterations, additions, demolitions, repairs or decorations of your house costing more than $75,000, you need to let us know as soon as possible as these can affect your policy.
Tip: when planning a bigger renovation, it’s important to confirm that your licensed builder has their own insurances covering them for the build.
Inspect your home
Reno time is the perfect opportunity to inspect your home for little things you could replace or fix to reduce your likelihood of needing to lodge an insurance claim in the future. Here’s a few things to look out for:
- Missing roof tiles or damaged tiles. These can lead to water damage and cost a significant amount to repair.
- Poorly draining gutters and downpipes. Check for cracks, and make sure your downpipes are connected to a working stormwater drain or other drainage system.
- Old taps and flexi hoses that may need repair. Plumbing connections from the water mains to major appliances, sinks and toilets are often a common source of water damage.
Make sure your newly renovated home is covered!
Once your renovations are complete, it’s time to reassess your insurance cover regardless of whether you invested a small or large amount into your upgrades. It’s very important that the sum insured accurately reflects the cost to rebuild your property or replace your contents. Check your Product Disclosure Statement for any exclusions periods that may apply once you have increased your cover.
Did you know that the Australian Securities and Investments Commission states that up to 80 per cent of homeowners are underinsured^? If you are underinsured, you will be liable to cover any repair or construction costs not covered by your policy for future claims.
Try the calculators on our website to estimate the rebuild cost of your property. Check all the details of your estimate and then all you need to do is give us a call on 8208 5696 to update your policy and you’re set!
Insure your most prized asset with Police Credit Union Insurance
Chat to one of our friendly insurance team specialists today about our Home and Contents insurance. We also offer competitive low-rate variable Renovation Loans with $0 monthly and annual fees with 100% offset accounts. For insurance or a loan simply call us on 8208 5696 or visit a branch.