Renovation Insurance NZ: What Homeowners Should Check Before Work Starts

Does normal home insurance cover renovations?

It depends on your policy and the work you're planning.

Some household policies may provide cover for minor alterations, while structural changes or larger projects may need different arrangements.

The Insurance Council of New Zealand (ICNZ) advises homeowners to check with their insurer before renovating because ordinary house insurance may not cover all construction-related risks.

For example:

• Replacing kitchen cabinets: Your existing policy may provide some relevant cover, but ask your insurer before assuming the work is included.
• Removing part of a roof or extending the house: The work may create additional risks involving water entry, existing structures, new construction and building materials. Ask what insurance arrangements are needed for the actual project.

These are examples of questions to investigate, not rules determining which policy you need.

Even when a builder is carrying out the work, check whether your existing house and contents policies continue to apply and whether additional cover is necessary.

Contract works insurance vs public liability insurance

These two types of insurance serve different purposes.

On a narrow screen, scroll the comparison table sideways to read both columns.

Contract works insurance

Contract works insurance is designed for building projects, including renovations and extensions. Depending on the policy, it may cover specified accidental damage to work under construction, building materials and certain risks affecting existing structures.

However, do not assume a contract works policy automatically includes the whole existing house. Ask the insurer specifically whether it covers:

• the existing building;
• the part being renovated;
• new work and materials;
• materials stored on or away from the site;
• materials being transported to the site;
• any relevant exclusions or special conditions.

The policy wording, schedule and written insurer confirmation determine the actual position.

Public liability insurance

Your builder may hold public liability insurance, but that does not mean every type of damage to your home is covered.

For example, a builder's policy might respond to certain liability claims involving neighbouring property, depending on the circumstances. That is different from insuring the renovation work or your existing house against accidental damage.

Do not treat a builder's public liability certificate as proof that your home and renovation are insured.

MBIE's building-project insurance guidance explains these insurance types and recommends checking what each contractor's insurance actually covers.

Who should arrange the insurance: homeowner or builder?

The answer depends on your building contract and the insurance arrangements accepted for your project.

MBIE describes different typical arrangements for new construction, renovations, full contracts and labour-only contracts. For renovations to existing homes, the homeowner may need to arrange contract works insurance. In other arrangements, the builder may arrange relevant cover.

These are typical arrangements, not a universal rule that every homeowner or builder must arrange a particular policy. Before signing or starting, clarify:

1. Who is responsible for arranging any required contract works cover?
2. Who is the policyholder, and who is insured under the policy?
3. Does the policy include the existing building and the renovation work?
4. Which contractors and subcontractors are covered?
5. What happens when the homeowner hires additional tradespeople directly?

If the builder says insurance is already arranged, ask for evidence of the relevant current policy and confirm its scope.

Where the homeowner and builder are arranging different policies, ask the insurers to clarify how the cover applies together.

For broader contract responsibilities, see SeekSaver's Renovation Contract Checklist NZ.

What should you tell your insurer before work starts?

Contact your current house and contents insurer and describe the actual proposed work. Useful information to have available includes:

• Type of work: For example, kitchen renovation, extension, re-roofing or structural alterations.
• Work affecting the existing building: Whether walls, roofing, cladding or other parts will be removed or opened.
• Builder and tradespeople: Who will carry out and coordinate the work.
• Timing: Expected start, completion and material-delivery dates.
• Occupancy: Whether you, tenants or other occupants will remain in the house.
• Materials: Any items you have purchased, and where they will be stored.
• Project changes: Whether the scope is provisional or likely to change.

Ask what happens to your existing cover while the work is underway. In particular, ask whether there are exclusions, excesses, conditions or notification requirements relevant to your project.

What if you move out during renovations?

Tell your insurer if the house will be unoccupied or vacant for any part of the work.

Some policies contain special conditions for vacant or unoccupied properties. The applicable definition and period depend on the policy. Do not assume a particular number of vacant days is allowed without checking.

If you need to move furniture or belongings into temporary storage, ask your contents insurer whether those items are covered while being moved, stored and returned.

ICNZ's November 2025 renovation guide specifically highlights temporary vacancy, contents storage and transit as matters to discuss with an insurer.

Questions to ask your insurer and builder

You do not need to become an insurance expert. You need answers that relate to your particular renovation.

Ask your insurer

• Will my existing house and contents insurance remain in force during this renovation, and are any restrictions or changes required?
• Do I need separate contract works insurance, or does my current cover address the proposed work?
• What cover applies to the existing house, the new work and materials?
• What happens if we temporarily move out, store belongings elsewhere or change the project schedule?
• What exclusions, excesses or conditions should I understand?
• When does the relevant cover start and end, and what must I do if the project is delayed?

Ask your builder

• What insurance have you arranged for this particular project?
• Who is responsible for contract works cover under our agreement?
• Does your cover include work by subcontractors and tradespeople you arrange?
• Can you provide the relevant insurance details and confirmation of cover?
• How will proposed changes, delays or unexpected site conditions be communicated to whoever is arranging the insurance?

For broader questions about choosing and working with a builder, see SeekSaver's Questions to Ask a Builder Before a Renovation.

These are homeowner clarification questions. They are not a prescribed legal questionnaire or proof of insurance.

What should you confirm in writing before work begins?

After speaking with your insurer and builder, keep the information that establishes the agreed insurance arrangements. Depending on the project, this may include:

• the renovation description provided to the insurer;
• the insurer's written response about existing cover and any additional requirements;
• the applicable policy wording, schedule, certificate or endorsement;
• the agreed building-contract responsibilities for arranging insurance;
• confirmation of relevant contractor insurance and subcontractor arrangements;
• the applicable cover dates and any important restrictions.

Check that the project description, dates and responsibilities are consistent across the information received.

A builder's verbal assurance is not a substitute for checking what the relevant insurance actually provides.

If the insurer and builder give conflicting answers, clarify the difference before relying on an assumed arrangement.

What if your renovation changes or takes longer?

Insurance arrangements may need to be reconsidered when the project changes. For example:

• The builder proposes removing more of the roof than originally planned.
• An extension becomes larger or includes additional work.
• The construction period is extended.
• Materials arrive earlier than expected or are moved into storage.
• You decide to move out after originally planning to remain in the home.
• Another contractor becomes involved.

Ask your insurer whether the change affects cover, the policy period or any information previously provided.

The ICNZ guidance notes that construction delays may require an extension to contract works cover.

For the separate process of agreeing and documenting changes with your builder, see SeekSaver's Renovation Variations NZ.

What should you check after the renovation finishes?

Completion is another useful point to contact your insurer.

Tell the insurer that the renovation is finished and ask whether the home and contents policy details need updating. In particular, discuss whether:

• the house's sum insured still reflects the completed home;
• new fixtures, fittings or belongings need to be considered;
• the house's use or occupancy has changed;
• temporary construction cover should end or transition to ordinary cover.

The right arrangements depend on the actual policy and the completed work.

Keep the insurer's written confirmation with your renovation records.

The key takeaway

Before renovation work begins, understand three things:

1. What your existing insurer says about the proposed renovation.
2. What insurance your builder has actually arranged and what it covers.
3. Who is responsible for addressing any remaining insurance questions or requirements.

Use written confirmation rather than assumptions. No single insurance arrangement is appropriate for every renovation. The applicable contract, policy wording and insurer's project-specific confirmation are what matter.

This article provides general information for New Zealand homeowners. SeekSaver does not assess insurance policy coverage, recommend an insurance product, provide personalised financial advice or determine legal liability. Confirm requirements directly with the relevant insurer and obtain appropriate professional advice where needed.