Personal risk where a home owner or investor has personal, particularly real estate assets, is a ready-primed mine field and a money stream for lawyers and their clients. Public liability, third party and injury claims are front and centre exposure points. Who drives these risk points? The big litigators such as workcover, workers compensation insurers, medical insurers and other general insurers, particularly those who insurer for personal accident or loss of income. Herein lies the hidden enemy
A home owner, may not be at fault or be a party to an incident, but commercial litigation means any claim, true or otherwise, must be defended, and this means lawyers and heavy legal costs.
What does this mean to the average home owner, or investor seeking to undertake home renovations or simply non-structural or decorative improvements? Be sure to hold appropriate and relevant DIY renovators, owner builders insurance.
Construction, renovators and owner builders insurance houses are sensitive to the generally accepted rule of standard home insurance products, particularly retail brands, where price is key selling feature, big bold savings claims, and heavily reliant on advertising (eg consumer grocery brands, online discount brands), a little but important known fact is an exclusion of cover clause, where an insurance product fails to seamlessly continue to provide cover, once renovations are in progress. The severity of these exclusions varies by insurance product and insurer. For example, budget type home insurances contain little or no cover once renovations commence. Others may allow up to $50,000 of renovation works before this exclusion trigger is pulled. But how can and where may an inexperienced, and perhaps busy mum or dad find these insurance cover exclusions in the insurers contract of insurance or PDS? General as with most insurance documents, with difficulty, as they are tucked under various headings. Generally though a quick document (PDF) search will assist. Alternatively, a phone call to the home insurer with specific reference to the home insurance policy number, and this is very important for accuracy, will assist should a dispute arise in the future. A common sense guide is to remain alert on the very fact an insurers call centre is staffed with sales or claims agents and not insurance technical experts, and in nearly all instances not qualified to provide technical advice or opinions.
The 5 most critical insurance elements are, comprehensiveness in cover definition, insurer’s reputation and experience in this renovator’s class, insurance exclusions definitions and depth of cover.
Tags: australian owner builders home warranty schemes, Building insurance, owner builder insurance, Owner builder sa, owner builder subcontractors, Property investment, Real estate insurance, renovator insurance, Renovators insurance, Tenants rights, vic owner builders, voluntary workers insurance
Categorised in: ACT Owner Building, Commercial Property Insurance, Contents Insurance, Granny Flat. Garage. Shed., Landlord Insurance, NSW Owner Building, Owner Builder Insurance Cover, Owner Builder Tools, Queensland Owner Building, SA Owner Building, Tasmania Owner Building, Victorian Owner Building, WA Owner Building
This post was written by Technical Underwriting Centre