Building or renovating your home? Here is what you need to know about insuring your home during a building project.

If you have been involved in a building project that’s gone wrong, you will appreciate the importance of adequate insurance cover. Home renovations and building projects will test your patience and your sense of humour at the best of times. When things go wrong your dream project can turn into your worst nightmare. “Create with the heart; build with the mind.says Criss Jami. This is sound advice!

One of the most important decisions you need to make when commissioning a building project, is your contractor.  Remember to check the insurance status of your contractor.  Choosing a contractor who is not adequately insured can lead to significant financial losses if things go wrong. If you are planning a home renovation or a building project, it’s worth checking whether your contractor has insurance for the following:

  • Cover for unforeseen damage to your property during the project
  • Cover for unforeseen damage to the property of others or bodily injury to a member of the public while carrying out their work on the project

This type of cover is called “contractor’s all risk cover” and it is essential for general building contractors, electricians, plumbers and heating and ventilation contractors.  It is recommended that you only use contractors who have adequate insurance cover in place. In the case of renovations to your buildings, your existing Home Contents-and Buildings Insurance will automatically implement certain exclusions to your cover. These exclusions can be insured via a separate contractors all risk policy.

Remember to also discuss the nature of your project and any concerns you may have with your APBCO Broker. Your broker will make sure that your policy makes adequate provision for possible risks associated with your building project and will also inform your Insurer accordingly.  Your Insurer might want to know who your contractor is and might want to verify the insurance they have.  In some cases, you may need to pay higher premiums during the project should your Insurer foresee an increased risk.

Once your dream home has been finished and it looks exactly the way you wanted it to, remember to inform your broker of any new non-standard additions brought in (This could be a new thatch roof for your lapa as an example). Request another evaluation on the value of your property and adjust your insured amount if it is necessary.


Home is where love resides, memories are created, friends always belong, and laughter never ends. Build a house that adds to the romance of being home. Good luck with your project!


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