Insurance Blog | State Insurance

Updates to State Contract Works Insurance

December 2023

 

Doing some renos over summer? If your plans involve structural changes to your building or removal of any roofs, cladding, doors, or windows, your current home insurance may not cover loss connected to the building works.

Before hammer time, stop. Call us first to check whether you’ll need Contract Works Insurance to cover your property while work is in progress.

We’ve recently updated our Contract Works Insurance policy with some new automatic benefits, new optional benefits, and updates to existing benefits. You can find all the details in the policy wording, but for now, here are some of the key updates.

Under our updated Contract Works Insurance policy, you’re now automatically covered for these benefits:

Overseas airfreight expenses

If you need to order items from overseas to repair or replace your property after it’s damaged in a covered event, we’ll pay reasonable airfreight costs.

Protection expenses


If there’s a peril that threatens to damage your building works, we’ll cover the reasonable costs associated with protection measures if such damage would have been covered by your policy. For example, if there’s a flood warning and you put down sandbags to reduce the risk of damage to your property, we’ll pay for the sandbags and other related costs.

Transit and storage

Previously, we provided cover up to $25,000 for items ordered for your building works that were damaged while in transit. We’ve now increased this cover to $250,000, and have also expanded cover to include items damaged while in storage, provided those items are intended to form part of the building works. For example, if you buy a fridge to go into the property and it’s damaged while in your offsite storage, we’ll cover the cost of replacing or repairing the fridge.

The updated policy offers these new optional benefits:

Completion cover

Contract Works Insurance typically ends when building works are completed on your property. This optional benefit offers an extended period of cover for up to 30 days after completion, so you’re covered while you get a CCC and home insurance for the property.

Post loss land improvements

This optional benefit covers the costs of reinstating land physically damaged during the construction period (other than by fire) that is part of the contract site. For example, if there’s a flood and the land on the property is eroded or has a slip, we could pay up to $25,000 towards the cost of installing a retaining wall.

Policy benefits may be subject to sub-limits and different excesses. Please read the policy wording for full details, limits and exclusions, and call us to discuss your renovation insurance needs. Insurance cover is subject to approval.

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