09 Dec 4 Changes Your House Insurance Company Needs To Know About
As a homeowner, you already know how important house insurance is when it comes to protecting your most valuable asset. But did you know that any time you make a significant change to your home, you may need to update your house insurance policy too? Things like major renovations or home improvements, renting out a room, leaving your home vacant for an extended time, or starting a business from home are all reasons to update your house insurance policy. Let’s dive a little deeper into each of these.
Planning a home renovation
Home renovations are an excellent way to add value to your home and really make it your own. But don’t get too caught up in your renovation project and neglect to inform your insurance company of the changes you’re planning to make. The last thing you want when it comes to making a claim is to find out that your home is underinsured or not sufficiently covered.
Most house insurance policies don’t cover major renovations, while some will cover minor, non-structural work only. But no matter what type of renovation you’re planning – whether it’s a major building work or a new deck – any changes you make to your home could impact your house insurance. So, before you proceed with your renovation project, it’s a good idea to check with your insurance company or insurance adviser to find out if any additional cover is required.
Once the works are completed, remember to update the sum insured on your house insurance policy if the renovation has changed the value of your home. You may also need to update your contents insurance if you’ve added expensive items to your home that need to be included in this policy. Reviewing your house insurance regularly and updating your insurance company any time a renovation is planned ensures you have the right cover to fit your changing needs.
And remember, if you’re considering financing the cost of your renovation, get in touch with the personal lending team at Max Loans to discuss a home improvement loan. Or, to find out about adding the renovation costs into your home loan, contact one of the experienced Mortgage Advisers at Max Mortgages. And you’ll find some handy tips on getting your home ready for summer in this blog post.
Renting out your home or a room
These days it’s not uncommon for homeowners to rent out their homes, or rooms in their home, to earn a rental income and help cover mortgage repayments. But having tenants in your home comes with some risk, and that’s why it’s so important to ensure your home is protected with adequate house insurance cover should something go wrong.
If you’re considering having tenants stay in your home or renting out a room in your home, it’s important you’re clear on how this could impact your house insurance. Contact Max Insurances to talk to an Insurance Adviser about landlord insurance to cover against any damage caused by tenants, loss of rental income, and landlord liability. This type of insurance may offer more comprehensive cover and could replace the need for general home and contents insurance.
Leaving your home vacant for an extended time
Leaving your home empty while you travel or stay elsewhere could make it an easy target for criminals and break-ins. It could also mean more damage in the event of a fire or a water leak if the problem is left undetected for some time.
Insurance companies need to be advised if you are planning to leave your home vacant for more than 60 days, as the increased insurance risk of an unoccupied or vacant home could mean any claim you make while your home is empty gets declined. And any damages or losses you incur with a vacant home may have to be paid for out of your own pocket if you fail to advise your insurance company beforehand.
Starting a business from home
Whether the result of the pandemic or simply a personal choice, more New Zealanders are working from home – or running a business from home – than ever before. Depending on the type of business you run and the activities you undertake in your line of work, running a business from home can increase the risk of loss occurring to your buildings and contents.
So if you are running your business from home, you’ll need to update your insurance company to ensure you have adequate insurance cover for any stock you hold at home or business equipment or machinery used in your business. Your insurer will need to know about these items should you need to make a claim due to loss or damage.
What’s more, if you have customers or suppliers that visit your premises, you may need additional liability insurance to cover any accidents or injuries on site, so it’s a good idea to get in touch with a Max Insurances Adviser to discuss your individual needs when it comes to updating your house insurance to cover working from home or starting a business from home.
Review your insurance regularly
Your insurance needs change as your lifestyle changes, which is why it makes sense to regularly review your insurance policies. That way you can be assured you have the right insurance cover to fit your needs, and you’re not paying for insurance cover you don’t need or missing out on vital insurance cover. For all your house insurance, contents insurance, and general insurance needs, talk to a Max Insurances Adviser today and let us help you compare insurance NZ wide to find the best deal!Request a Call Get a Quote
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