Is damage incurred during remodeling covered?
Remodeling a home involves a lot. You can choose to do the chores yourself or outsource it to a contractor. Either way, you obviously want your home to be properly insured during the renovation. But what if damage does occur during the renovation; is that covered by the home insurance?
Building insurance: coverage during remodeling
When remodeling, building insurance coverage is often limited. An insurer usually sets a number of conditions for a renovation. First, you must notify your insurer as soon as possible if you are going to remodel, even if it is a partial remodel. In addition, the insurer assumes that you do not live in a construction site. For example, if you suffer leakage damage while the extension is not yet waterproofed, this is not insured. Your home must be occupied and wind and watertight during the renovation. If you meet your insurer's conditions, your home is insured for basic coverage during a remodel. Building materials and other items that are in the home and still need to be installed are then usually insured as well. These might include materials needed for the remodel, or a kitchen that still needs to be installed.
Do it yourself or have it done?
If damage occurred during a remodel, the insurer can recover that damage from the person who remodeled. Are you having the renovation done by a contractor? If so, the contractor can be held liable for the damage. In that case, submit the damage to the insurer. The insurer will then take over the recovery process. Are you going to remodel yourself? Then the insurer can reject the claim if they can prove that the damage was caused by the renovation.
All-risk building insurance
Nowadays, many people choose all-risk building insurance. With all-risk building insurance, you are insured for fire damage, burglary and vandalism, damage from adverse weather conditions, such as storm, lightning and hail, damage from sudden unforeseen events.
In the policy conditions, a number of exclusions of coverage are mentioned. Therefore, if the damage is not excluded it is insured in the building insurance policy. Damage caused by your own mistake during remodeling is therefore insured.
When no coverage?
There are some in which you have no coverage or limited coverage. For example, that is if:
- Your home is unoccupied during the renovation
- Your home is not wind and watertight, for example, because roofs, walls, windows or doors are missing
- If you do not inform your insurer within 30 days of the remodel and you have a claim after the remodel is complete
In the first two situations, you are then only insured for damage caused by fire, explosion, lightning, storm and hail. Damage due to burglary, theft and vandalism is only insured if there are traces of breakage visible on the home.
How is the house insured during remodeling?
For insurance purposes, the insurer does not assume you live in a construction site. Intensive remodeling of a house takes extra risks. This is also the reason that damage during a renovation is not insured on the building insurance. For example, leakage damage in an extension that is not yet watertight is not insured.
Be able to provide an invoice in the event of a claim
In the example of the extension, if there is a claim, the insurer will find out whether it is actually insured on the building insurance policy. In the case of a recently installed extension, the insurer will be interested in further information. After all, if it turns out that the damage was caused by improper placement or workmanship, the insurer will want to recover damages from the builder of the addition. Did you build it yourself? Then the insurer may reject the claim if they can prove that the damage was caused by the remodeling. Still, there are options for insuring this type of damage.
Holding the contractor liable for damages
Are you having your home remodeled by a contractor? If so, you can hold the contractor liable for the damage in the event of damage. The contents or building insurance may cover the damage. In that case, submit the damage to the insurer. The insurer will then take over the recovery process.
Does building insurance provide coverage for damage incurred by DIY?
You can keep the cost of a remodel low by doing it yourself. This way the cost is limited to the cost of materials and the necessary free time. But beware! In case of damage, there may be problems with the building insurance. The insurance company can recover damages caused by a mistake during the renovation from the person who did the renovation. What if you have rebuilt yourself?
You want to make the living room several square meters larger. Outsourcing the work will cost you, say, €20,000. You work in construction yourself and have done this job many times before, so you are going to do it yourself. Now the investment is limited to the cost of materials. For €6,000, the extension is ready. After the first heavy rain it turns out that the extension is not completely watertight. The damage to your house amounts to €1,000. Fortunately, you have building insurance that provides coverage. But will the insurer pay out the €1,000?
Get property insurance through Alpina
Don't have building insurance for your (new) home yet? Then do so directly on Alpina.nl! By comparing home insurance policies, you can easily find out which policy best suits your needs. Look not only at the price, but also at the content. In the policy conditions you will find how you are insured during a renovation.
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