03 June 2014: Woolworths Insurance research has shown that up to half of all renovators may not have the right insurance and as many homeowners are unaware about what is covered by their insurance when completing a renovation.
More than half (52%) of those surveyed didn’t know what their policy covered them for, and nearly a quarter (22%) of those surveyed thought their insurance covered them for all renovation work.
The research showed nearly one fifth (19%) of homeowners were under the impression that their policy definitely covered stolen tools and one in 10 even thought it covered dodgy tradesmen.
Head of Woolworths Insurance, Chris Cramond, said, “Before starting a home renovation it is important for home owners to check what they’re covered for during the renovation period. They also need to contact their home and contents insurer to let them know their plans.”
The research also found that half (50%) of those surveyed didn’t know they had to contact their insurance provider before embarking on their renovation project. Not advising an insurance company before starting a renovation can mean that insurance policies may become void.
“Depending on your insurance policy you may need to take out additional cover for renovation-related damage. For keen DIYers, who are brave enough to take on the renovation themselves, ensure that tools and materials are stored safely and check with your insurer that these are covered,” Mr Cramond said.
“It is also important that homeowners do their research and employ licensed tradesmen for specific tasks, especially electrical and plumbing. Also ensure that your builder has Builders Warranty Insurance as it’s a legislative requirement,” he said.
While nearly half (47%) of renovators don’t know if their home and contents insurance policy covers them for potential DIY disasters, more than a third (39%) have left tradespeople unsupervised in their home and one in 10 (10%) didn’t check their builder’s credentials.
“Once your renovation is finished, the value of your home is likely to have increased, so consider recalculating the insurance cover to ensure that your most important investment is protected,” Mr Cramond said.
Recalculating the added value to a home following a renovation is often not top of mind for owners, which is why more than a third (39%) of homeowners guess the new value of their home following a renovation, and increase their insurance to that value. A further nine per cent weren’t aware that you needed to recalculate the insurance cover.
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Notes to editor
This study was conducted online by Galaxy between Tuesday 6 May to Thursday 8 May, 2014. The sample was 1,029 Australians aged 25-64.
About Woolworths Home Insurance
Woolworths Home Insurance was launched in 2012. Woolworths Home Insurance Cover is issued by The Hollard Insurance Company Pty Ltd ABN 78 090 584 473 AFSL 241436 (Hollard). Woolworths Limited AR 245476 (Woolworths) acts as Hollard’s Authorised Representative. Any advice provided is of a general nature only and does not consider your personal circumstances. To determine if the product is right for you read the Woolworths Home Insurance PDS is available at www.woolworths.com.au/insurance or by calling 1300 10 1234.