Are you considering home renovations? Make sure you protect your existing home

Renovating your home – what do you need to consider when it comes to insurance?

We have seen an increased number of our clients who are undertaking renovations of their homes, perhaps taking advantage of the Federal Government’s recent announcement of the $25,000 HomeBuilder grant.

Whenever you are considering renovating your home you should be aware there are serious implications to your home insurance cover and speaking to your insurance broker is important before you sign any contracts.

About Home & Contents Insurance & Renovations

Home insurance policies have a limit for renovations or extensions, when the project cost exceeds this amount the home building section of the policy will be cancelled as your home has become a construction site. The increased risk exposure is outside the scope of a home and contents policy.

Your builder might provide insurance – but it might not provide enough coverage

Often the builder will organise for your project to be covered by their contract works and liability policy at a cost included in the project contract. The policy conditions and coverage under a contract works policies can vary widely it is usual that these policies do not automatically cover the existing structure of you home.

For example –  your home building is insured for replacement value of $800,000 and the renovation and extension contract value is $200,000. This project value exceeds your home insurance limit therefore the building replacement section is cancelled. The contract works policy provided by the builder covers the $200,000 value of the works.

Where is the insurance cover for your home?

So, how can you make sure your renovations and your home & contents are covered?

We can help you work through your individual situation by reviewing your current home insurance policy and the proposed scope of works and estimated project cost.

In some circumstances we may recommend a principal controlled contract works policy which allows greater control to you over what is covered by the policy, including both the renovation and the existing home.

This can even work out to be more cost effective than the builder including it as a part of the project cost.

We will also assist you to make sure you have the right cover in place once the works have been completed and you are enjoying your newly renovated home!


Your home is usually one of your most significant financial investments plus hugely sentimental to the entire family.

Would you wish to put that at risk by allowing someone else to arrange the insurance cover for you?

Contact us for an obligation free assessment and advice on your situation before signing any contracts.

The information contained herein is of a general nature only and is not intended to be relied upon nor is it a substitute for appropriate professional advice. Whilst all care has been taken in the preparation of the material, it is not guaranteed to be accurate. Individual circumstances are different and as such require specific examination. Asparq cannot accept liability for any loss or damage of any kind arising out of the use of or reliance upon all or any part of this material. Additional information may be made available upon request.

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