Wherever you live in Papua New Guinea, building an extension is an exciting prospect, but one that requires a lot of thought and planning.
Among all the decisions you need to make, it is easy to forget that an extension can affect your home insurance policy. However, it is important that you know whether or not you are protected, as mistakes with building work can easily result in expensive damage to your property.
This article will tell you what to look out for to ensure your extension project goes off without a hitch.
1 Review your insurance policy
Different insurance providers, and even different policies from the same provider, offer different levels of cover. This means that some will offer you protection against circumstances that others will not.
Your provider should have given you a policy document when you purchased your cover, and this will tell you what is included and what is not. This is a great place to start when trying to establish if your home insurance policy covers you for building an extension.
2. Tell your insurer what is happening
In most cases, when you read your policy document you will see there is a requirement to inform your insurer of changes like building a home extension. In fact, not doing so can make your cover invalid.
This is because by having the work done you are increasing the risk of needing to claim on your policy, which means your insurer is more likely to have to pay out. This risk does not just relate to an increased chance of structural or cosmetic damage to the house, but there will also be a greater security threat to your possessions as the builders will likely be coming in and out of your property when you are not there.
However, if your insurer tells you that your current policy will not cover you, this does not mean you have to cancel the proposed extension. It is likely that they will be able to offer you a different policy that will provide the protection you require. At Trans Pacific Assurance Limited (TPAL) we always work with our customers to provide them with a policy that best suits their individual needs.
3. Check your contractors have insurance
Before starting a home extension in PNG, you also need to check what level of professional insurance the tradespeople working on your property have. They should be protected against the costs of damaging the buildings they work on, and will expect to be asked for the details of this.
Doing research and finding the best company for the job is important from many points of view, however poor work can also affect the way your home insurance policy works when building an extension. Most policies will not cover you against the costs of having to get the work done again if it is not effectively completed the first time around, so finding a reliable contractor should be top of your priorities.
At TPAL we understand that your house is one of your most prized possessions, and that you want to know that it will be protected during extensions or renovations to your home. To find out more about how our home insurance policies can help you do this, get in touch with our team today.