Tips to Keep Costs Manageable in a House Renovation Project

Posted by SELF BUILD INSURANCE on March 24th, 2020

Whether it is kitchen upgrade, loft extension or basement development, a house renovation project seems like a simple and clear way to add value to your property and make it more liveable. However, there are many unpredictable risks and costs that can quickly spiral out of control. Homeowners need to carefully plan and take into consideration several factors, including renovation insurance, to ensure their project runs without a glitch.

Budget for Likely Expenses

Many homeowners simply do not know where to begin with making cost estimates. A good starting point is to set a budget and research costs that are likely to be incurred for the project. Based on the budget, you can get down to establishing renovation goals. It’s also a good idea to set aside a portion of the budget for contingencies because there will be elements that require more financial allocation than anticipated. At this stage, you should also find out if your regular home insurance provides cover for renovation. If not, you should seriously consider a specialist house renovation insurance product.

Invest in Specialised Insurance Policy

Renovation insurance is a great solution to protect yourself from unforeseen issues that can occur while renovating a property. Unforeseen issues can be anything from property damage due to a natural calamity or property damage due to the contractor’s negligence. Burst pipes, theft of machinery or valuables on the site and damage to a neighbour’s property are all potential risks for which you may end paying from your own pocket. With specialist renovation insurance, you are not dependent on the contractor’s insurance or your own home insurance which may be limited in scope. This type of insurance will protect your financial interests should anything untoward happen during the project.

Factor In Project Delay Possibilities

Making plan alterations mid-way through the project can lead to additional costs. Plan changes can delay projects and require additional work from contractors and staff. In some cases, plan changes may be inevitable. It must be remembered that renovation insurance expires at the end of policy term. This could leave you unprotected in case of delay in completing the project. It’s a good idea to invest in a house renovation insurance product that comes with an extension period. A reliable insurance provider will communicate with you before the policy is about to expire. You may then request for an extension period and pay applicable charges to avail insurance cover.

Budget for Unforeseen Costs

Inexperienced home owners interested in renovations are usually not aware of hidden costs that can throw their budget out of gear For example, if the project involves removal of current fittings, debris removal costs can be quite high, especially if there is a lot of rubbish to be cleared. Debris removal may seem like a small aspect of a renovation project, but homeowners need to factor in the size of debris to be cleared, time required by staff to clear it and make arrangements for safe and compliant disposal etc. 

Before undertaking any property renovation project, keep these factors in mind – and take a specialist renovation insurance policy for peace of mind!