Understanding Construction Works, Renovations, Alterations & Additions in Strata Insurance

In the realm of strata insurance, it is vital to understand the implications of construction works, renovations, alterations, and additions to your building. This comprehensive guide, presented by Strata Insurance Solutions, will illuminate what you can expect when undertaking such projects. It is important to adhere to specific procedures and requirements to ensure adequate coverage and protection for your property. Read on to gain valuable insights into these processes.

Critical Considerations for Construction Works

When planning construction works exceeding $250,000, familiarising yourself with the exclusions in your insurance policy is crucial. Most policies have provisions that exclude claims resulting from these works where you have not notified your insurer in advance and obtained their approval.

Requirements for Approval


Before commencing any construction works, you must provide certain documents to your insurer. These typically include:

Copy of the Contract of Works Policy: This policy covers the construction company's obligations and responsibilities during the project.

Copy of the Building Contract and Scope of Works: These documents outline the details and specifications of the planned construction, renovations, alterations, or additions.

Start and Completion Dates: Insurers need to know the proposed timeframe for the project to ensure proper coverage.

Commencing Construction Works

If your insurer approves the submitted documents and agrees to cover the construction works, you can proceed with the project confidently. This approval provides you with the necessary assurance and coverage during the construction phase.


Inclusion in Building Sum Insured


Upon completion of the construction works, all the additions and alterations are automatically included in the Building Sum Insured. As the property owner, you only need to notify your insurer if the value of these additions increases the overall sum insured of the building to ensure adequate coverage. This streamlined process simplifies the management of insurance coverage for your strata property.


Safeguard for Lot Owners Fixtures and Fittings


Most policies include a safeguard provision for lot owners fixtures and fittings. This provision offers a benefit of up to $250,000 for additional renovations or alterations that were not initially factored into the Building Sum Insured. It provides an extra layer of protection for property owners in case the value of the changes exceeds the original estimation.


Property owners must understand the expectations and requirements surrounding construction works, renovations, alterations, and additions in strata insurance. You ensure comprehensive coverage and protection by notifying your insurer before commencing these projects and providing the necessary documentation. Strata Insurance Solutions is committed to guiding you through the process and providing expert advice to safeguard your strata property.


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This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisernet Australia AFSL No 240549, ABN 15 003 886 687.