New research from NRMA Insurance has today revealed that one in two homeowners made renovations to their home in the past 18 months, however, 60% forgot to update their home insurance policy once their renovations were completed. [1]

Updating home and contents insurance after renovations is critical for homeowners so they have the right cover in place to reflect the improvements and value they’ve added to their home in case they need to make a claim in the future.

The latest research from NRMA Insurance reveals that 26% of renovations cost less than $5,000, 31% cost between $5,000 - $10,000, 21% cost between $10,000 - $20,0000, and 13% of renovations cost more than $30,000, with the national insurer urging homeowners to update their policy to ensure their most prized asset is adequately protected.

Queensland homeowners were most likely to pick up the tools and work on their home, with close to 60% of respondents saying that they made some sort of renovations to their home during the past 18 months. In NSW, 54% of homeowners renovated their home, and in Victoria 46% of homeowners said they made some changes to their home.

NRMA Insurance Executive General Manager Direct Claims Luke Gallagher said the COVID-19 lockdowns had seen an increase in people renovating their homes because they weren’t able to travel, however, the job isn’t finished once they put the tools down.

“The lockdowns have provided Aussie homeowners with the opportunity to finish off some of those home projects that they’ve been saying they would finish for years, or they’ve taken the opportunity to undertake significant renovations to improve and add value to their homes,” Mr Gallagher said.

“You may have extended your home, rebuilt your kitchen or even added a swimming pool, so it’s important your level of cover under your insurance policy can replace or repair the new additions to your home.

“A lot of time, effort and thousands of dollars goes into planning and finishing renovations, so it’s important that homeowners take the final step and ensure their home is protected.”

The NRMA Insurance survey revealed the most popular renovations around the home were:

• Bathroom (36%)
• Outdoor (35%)
• Kitchen (34%)
• Bedroom (25%)
• Lounge room (23%)
• Other (11%)

“Renovations – big or small – not only add value to your house but often make living in the home more enjoyable, so we just want to remind homeowners to re-evaluate their home insurance. You may have increased the build cost of your home or bought new contents to freshen up the space and knowing you have the right cover under your home insurance policy will give you peace of mind your home and belongings are protected,” Mr Gallagher said.

NRMA Insurance provides the following home renovation tips:

• Before getting started, plan and cost out the renovations you want to make
• Depending on the size and scope of your project obtain professional advice and always use qualified, licensed tradespeople.
• When you have completed the renovations, check that your home building and contents insurance is up to date.