Why do I need Contract Works Insurance
Kiwis love to build things but protecting your assets while building often means arranging another type of cover in addition to your normal house and contents policy.
What is Contract Works Insurance?
Contract works insurance is sometimes referred to as builders risk insurance and the principle behind it is rather simple. Under most standard house and contents policies cover is excluded when major building work is undertaken or you are building a new home.
Where do I arrange contract works?
Typically you arrange your contract works with who ever your house is currently insured with. If you’re building a new property it pays to speak to an Insurance Broker as they’ll be able to give you the right advice and the right cover.
Why isn’t it covered under a house and contents policy?
Building and renovating carry very different risks to living in your home. For this reason most policies apply an exclusion relating to any loss caused by lifting, shifting or the removal of any structural support or roofing materials.
Some policies do have a basic cover up to a nominated sum for any minor renovations such as a new kitchen but it pays to check with your Insurance Broker or provider on the policy wording before undertaking any work.