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Planning a renovation? You might need more than just a hammer and nails—Contract Works Insurance could be your safety net. Find out when you need it, why it matters, and how to make sure your home is protected during construction.
Kia ora! Alice from Caveo here, Velocity's general and fire insurance brokerage. Today, I wanted to chat to you all about Contract Works Insurance – when do we need it? Why do we need it and what to do when we are doing renovations or construction to our homes.
Contract Works Insurance protects you against accidental damage done during the time of construction along with covering theft of materials, damage done in a Natural Disaster or fire, or any potential third-party liabilities. Contract Works can be taken out by a contractor for a new build and a homeowner for renovations or extensions to their home.
In a standard home policy with Vero, you are covered up to the value of $25,000 for damage done during construction on your property. With Ando, there is cover up to $100,000. You will need a contract works policy when you have a single contract totalling more than $25,000.
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A question we are faced with a lot is ‘why do I need to pay for contract works cover when the contractor will have liability?’. Well, sometimes there are events that are completely out of both ours and the contractor’s control. For example, what if you lay brand new concrete and then there’s a freak downpour which ruins it all? Or someone and their dog take a walk on your still drying driveway? Additionally, in recent times we have learnt that it is hard to get contractors to admit their wrongdoings and accept liability for their accidents. Contract works cover ensures that you will be covered for the damage out of everyone’s control, and without having to rely on the acceptance or the claim application of your contractor. Being able to make the claim and act yourself makes the claims process a lot less stressful for you as well as giving peace of mind knowing that your home is accurately protected.
Please let us know in advance if you are doing any sort of renovation around your home! We need to let the insurer know when works are being done on your home so that if there is a claimable event, they are fully aware of the current increased risk. When letting us know, it is best to tell us the works being done, their cost, who is doing them and how long they’ll be ongoing. Once we look over the information sent to us, we may still recommend a Contract Works policy, but we’ll just let you know as the time comes.
Big dog (aka. our GM) Joshua is off to London soon (July, I believe) on an incredible learning experience which he got purely from being SO great. I wrote a really cool article about managing money when you have ADHD, which is equally as great, over on the Velocity page. Check this out and praise me if you loved it and/or want me to refer you to someone to chat about this!
Lastly, we have our upcoming business leaders, owners and entreprenuers event on the 28th May. Please RSVP (to me is fine, I can note your name down) if you’d like to come along 😊
Stay warm, continue thriving, keep live laugh loving and as always, reach out to us if you want to chat (about literally anything).
Noho ora mai,
Alice
Alice Kauri | General Insurance Adviser
Caveo - powered by Velocity Financial
38 Vivian Street, Te Aro, Wellington
M: 027 273 3392
What is shared here is a generalised infromation. Always get professional advice for your personal situation :)Read Caveo's disclosure here.