Making sure your home and contents insurance provides cover during renovations is vital. We also look at the types of insurance the builder should hold.

Home and contents insurance

Before starting any work, you must notify your insurance company. The current policies for your home and contents may not provide cover during alterations, unless the insurance company agrees to extend cover during the period of work.

Note that work done without a building consent may not be insured under your insurance policy. Check with your insurance company.

Contract works insurance

The builder should have contract works insurance to cover damage to the property in the course of construction or alteration, i.e. damage to his own work. Contract works insurance generally covers:

• Subcontractors damaging the site or project.
• Damage to existing building and structures.
• Theft, vandalism and arson.
• Environmental damage from storms, floods, hail, snow, frost or earthquakes.

Using a skillsaw

However, contract works insurance won’t cover damage to the existing house caused by something not related to the construction work. When something does go wrong, it has to be established where and how the damage was caused, i.e. whether it was something the builder or subcontractor caused or whether the damage was caused by something unrelated to the contract work. Establishing what caused an event, like a fire, can be difficult and time consuming, and cause lengthy delays.

Where you are responsible for materials off-site or in transit, check to see if the contract works insurance or your own policy covers the loss or damage of these materials.

The tradespeople should also have public liability insurance.