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Building and Renovation Insurance
There's no doubt that things can go wrong when building or renovating a home. Failing to organise the proper insurance before you start building can cause a lot of trouble later on.
Builder's warranty insurance
Your builder must take out warranty insurance for any building work above a certain value (currently $12,000 in most states). Make sure they provide you with an insurance certificate before they start work.
This policy will cover you in case of defects or faulty workmanship for several years after the work is completed.
If you are building your own home, you will need to take out builder's warranty insurance yourself if you plan to sell the house within a certain time period (5 to 7 years in most states).
Check with the Building Services Authority or Office of Fair Trading in your state for more details.
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Renovation insurance
Renovating can affect your home and contents insurance policy, so notify your insurance provider before you start renovating. Failure to do this could mean they won't pay up if you need to make a claim later on.
You are responsible for the security of your home while it's being renovated. If some part of it can't be locked you must to do everything you can to stop thieves getting in.
You'll also need to ensure your home is protected from the elements throughout construction. Most insurance companies don't cover storm water damage during renovations.
Make sure your builder is licensed and registered with the Master Builder's Association. Most home insurance policies won't cover unlicensed work.
Hopefully, your renovation will increase the value of your home, so make sure you update your home and contents insurance once the work is complete.
Take the stress out of building insurance with one of our licensed building contractors.
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