Insurance and Building or Renovations

Statistically, South Africans are renovating their homes now more then ever. In fact, building plans approved by South African municipalities have increased by 14% during the first half of this year, while renovations have increased by over 16%.

However, many South Africans who are undertaking building or renovation projects to their homes or properties are not aware of the insurance implications of such activities.

For instance, did you know that whenever you hire a building contractor, it is standard practice for you as the property or home owner to sign a contract indemnifying the contractor from any liability that may result from their work?

What this means is that with your signature on the bottom of said contract, you are transferring all potential liabilities to your name. These liabilities can include 'damage to the contracted works', 'damage to the existing structure', 'building materials and/or fixtures theft', 'damage to existing household contents' and 'existing contents theft'.

You may be under the impression that should any of the above instances occur that your hired contractor will be responsible for the costs involved. Unfortunately this is not that case, as per the contract you signed.

You as the homeowner are liable and as such need to ensure that you are comprehensively insured.

Even if you think you are comprehensively insured, always check with your broker or insurance company before you begin building work or alterations. Most personal insurance policies do not cover the above risks.

Simply ask your insurance carrier or broker to set you up with a secure Contractor?s All Risks and Liability cover before any work begins and you can enjoy peace of mind during the construction or alteration process.

After your building or renovation work is completed, remember to have your insurance requirements reassessed. This will ensure that all of your new rooms, structures, contents etc are also comprehensively insured. You never want to be underinsured.