Renovating a home is a big investment, both financially and emotionally. While renovations can be an exciting process it is important that homeowners do not forget about the potential insurance aspect of home renovations, and speak to their broker prior to any construction work to ensure that their policy will cover any unforeseen events.
This is according to Lynda Brown, Regional Manager: Kwa-Zulu Natal at MUA Insurance Acceptances, who explains that when altering a house, there is a change to the building and this is material to the insurance risk and therefore the insurer has to be made aware of the renovations. “During a renovation unforeseen damage can occur to the homeowner’s possessions or the house itself. In the event that the policyholder does not disclose the alternation(s) at commencement, they run the risk of having their insurance claim for damages occurring during the renovation process rejected.”
By informing the insurer the homeowner is providing them with a platform to review the risk and apply revised terms to the insurance policy, while the contractors are renovating the home, says Brown.
“If the contractor causes any damage to the house it is important that the homeowner lodges a claim, even when it is determined that the contractor is liable. Provided that the insurance provider agreed and extended the cover to note the renovations, the homeowner may continue to lodge a claim with the insurer, who in turn has right of recourse against the builder. Failing this, and dependent upon the building contract conditions, the builder will be responsible to settle any damage caused.”