As homeowners opt to hold off from selling their properties and decide to renovate instead, it’s important to remember to protect your asset.
In addition to concerns around cheap renovation jobs, many also forget the importance of careful planning and decision-making to avoid overcapitalising.
Cherie Barber, renovation expert working with Allianz Australia, offers her top five tips to protect your investment.Always make sure you’re using a licensed tradesperson for all home renovation jobs. Tradies need to be licensed for the specific work they’re performing. For example, only a licensed electrician can replace lights in your home. These days, you can quickly do an online check of a tradie’s licence through the relevant governing body in your State or Territory.
1. Most homeowners never think of ongoing maintenance work, post-renovation. For example, the flexi hose under your kitchen sink should be replaced roughly every five years.
2. Most homeowners don’t know this and it’s one of the most common water damage insurance claims. Replacing the hose is a small and inexpensive task, compared to the thousands of dollars in water damage that a ruptured hose can cause.
3. Faulty waterproofing in a bathroom can be disastrous, causing leaks and extensive flooding. If you’re renovating or building a new bathroom, make sure you engage a licensed waterproofer to carry out waterproofing and that they’re qualified to issue you a waterproofing certificate on completion of the job. (Regulations may vary between States and Territories).
4. A power surge or excessive current can cause the motor in common household appliances to burn out. Big-ticket items like fridges, washing machines and split-system air conditioners all have motors that can be damaged by surges in the household electrical circuit.
5. Insurers may only provide limited cover or not cover you when you are renovating, such as if your renovations are over a certain value. Before you commence any renovation, check if you are covered under your current policy or if you need to take out additional insurance.