Two-storey brick and weatherboard house, the kind of home that needs its renovations declared to the insurer

Home Insurance With Renovations Planned

Work booked for next year is a question on every home proposal, and declaring it narrows the market. We declare the works, sort out which policy covers what, and take the house to the insurers that write it.

12 mths

The window every home proposal asks about

~$7.1K

Placed, $1M house plus contents

24-72h

With all information in hand

Recognition

THE SHORT ANSWER

Renovations planned in the next twelve months have to be declared on a home policy, and they narrow the market: on one recent placement three of five markets declined on the works alone. Cosmetic work in the same footprint is usually accepted with a note. Structural work, extensions and anything changing the rebuild cost needs the builder's contract works policy alongside the home policy, and the sum insured is endorsed on completion. Appetite is case by case.

Tank arranges this for owner-occupiers who want the house insured properly while the work runs, rather than an online policy that assumed nothing was happening. The work is separating what the home policy covers from what the builder's policy covers, and presenting the works to the markets that accept them.

01WHAT COUNTS AS A RENOVATION

What the Insurer Calls a Renovation, and Whose Policy Covers It

Insurers draw the line at structure. Here is where common projects fall, subject to each policy's wording.

The works	How insurers tend to treat it	Which policy
Paint, floor coverings, new kitchen or bathroom in the same footprint	Usually declared and accepted on the home policy, sometimes with a condition on who does the work	Home policy continues; tell the insurer before the trades start
Roof replacement, re-stumping, structural wall removal	Structural work; a market may decline or exclude damage arising from the works	Home policy for the existing house plus the builder's contract works policy for the works themselves
Extension, second storey, granny flat build	Treated as construction; the home policy usually will not cover the new works in progress	Builder's contract works policy for the build, home policy endorsed for the changed rebuild cost on completion
Owner-builder project of any size	Not typically written under a home product while the works run	Owner-builder contract works policy, then home cover on completion; see contract works insurance
Moving out while the work is done	Adds unoccupancy to the works; the field narrows further	Declare both; some markets attach inspection and water-off conditions

RENOVATIONS QUOTE

Tell us what the work is and when it starts

The house, the works, the start date, whether a builder is doing it and whether you are staying. We'll come back with terms from the markets that write it.

Open quote form

02GETTING IT RIGHT

Six Things That Decide Whether the Cover Holds During the Works

Declare It Before You Bind, Not After

Renovations planned in the next twelve months are a standard question on a home proposal. Answering no and starting work in March is a non-disclosure, and it is the kind that surfaces at claim time on a fire or a water loss during the works.

Cosmetic Versus Structural

Insurers draw the line at structure. Paint, carpets and a kitchen in the same footprint are one conversation. Roof, walls, stumps, extensions and second storeys are another, and the second usually needs the builder's contract works cover running alongside the home policy.

Whose Policy Covers the Works

Damage to the new works in progress, the materials on site and the builder's liability belong on the builder's contract works policy, not yours. Your home policy covers the existing house. Ask the builder for a certificate of currency before they start, and check it names the site.

The Sum Insured Moves

A $250,000 extension on a $900,000 house is a $1.15 million rebuild on completion. Tell the insurer the expected completion date and the new figure so the policy is endorsed when the works finish, not discovered short at the next renewal.

If You Move Out

A house empty during a renovation is rated on both. Some markets that would accept the works will not accept the unoccupancy, or will attach inspection and water-isolation conditions. Declare it and keep to the conditions.

Which Market, Not Which Price

On one recent placement three markets declined on upcoming renovations and one on location; two quoted. The lower quote came from a market that specialises in homes with works planned.

CLIENT SUCCESS

Works Declared, Market Narrowed, House Placed

A recent Tank placement, anonymised. The premium is an approximate gross figure and reflects the risk at the time, not a guide to future pricing or turnaround.

01 Renovations planned, three declines, placed with contents

An owner-occupied weatherboard house with a colorbond roof on Sydney's northern beaches, building sum insured $1 million and contents $100,000, with renovations planned for the coming year. Smoke alarms, deadlocks and key-locked windows, a garage with a panel door.

Three markets declined on the upcoming renovations alone and a fourth on location. Two quoted, at figures roughly $5,000 apart for the same house. The works were declared in full, with what they involved and when they would start.

THE RESULT:

Placed with CGU at approximately $7,100 a year for building and contents, with the works declared.

Premiums and outcomes described are specific to each client and indicative only. Your own terms will depend on your circumstances and the insurer.

RENOVATIONS FAQS

Common Questions About Home Insurance and Renovations

01 Do I have to tell my home insurer about renovations I'm planning?

Yes. It is a standard question on the proposal and a change in the risk during the policy. Cosmetic work in the same footprint is usually accepted with a note. Structural work, extensions and anything that changes the rebuild cost needs to be declared before it starts, and the new works in progress usually need the builder's contract works policy alongside your home policy. Not telling the insurer is the kind of non-disclosure that decides a claim during the works.

02 Will planned renovations stop me getting home insurance?

They narrow the field rather than close it. On a recent placement three markets declined on the upcoming renovations alone, one on location, and two quoted. What decides it is what the work is, when it starts, whether a builder's contract works policy will cover the works, and whether you are moving out during them. Send those four answers with the enquiry and it goes to the markets that write it.

03 Does home insurance cover the renovation itself?

Generally not. Your home policy covers the existing house. Damage to the new works in progress, materials on site and the builder's liability sit on the builder's contract works policy, or on an owner-builder contract works policy if you are doing it yourself. See contract works insurance. On completion, the home policy is endorsed for the new rebuild cost.

04 What if I'm doing the work myself as an owner-builder?

An owner-builder project is not typically written under a home product while the works run. The right structure is an owner-builder contract works policy for the build, then home cover on completion at the new sum insured. Our owner-builder contract works page covers it.

05 How much does home insurance cost when renovations are planned?

One recent placement: approximately $7,100 a year for a $1 million house with $100,000 of contents on Sydney's northern beaches, with renovations declared, after three markets declined. A comparable house with nothing planned in Sydney's north-west placed at approximately $3,800 the same month. The works, not the house, explain most of the gap. See the home insurance cost guide.

06 The renovation is finished. Does anything change?

Two things. The rebuild cost has gone up and the sum insured should follow it, and the works condition on the policy can come off. Tell us the completion date and the final cost of the works and the policy is endorsed. At the next renewal the markets that declined during the works will often quote the finished house.