Renovation Insurance: Do You Really Need It?

Understanding Renovation Insurance What Can Go Wrong? • Water damage to lower floor neighbor from waterproofing failure • Worker injury on your property • Damage to common property (lifts, corridors) • Fire from hot works or electrical faults • Theft of materials from your unit Types of Coverage Contractor's All Risk Insurance Covers damage to the renovation works and third-party liability. Most reputable contractors carry this. Public Liability Insurance Covers damage to third parties (for example, neighbor's ceiling leak). Minimum $500,000 coverage recommended. Worker's Compensation Insurance Mandatory by law for contractors with employees. Verify your contractor has this. Who Should Be Insured? • Your contractor should have their own insurance (verify before signing) • You should consider a homeowner's renovation insurance policy ($200-500 for typical projects) What to Check • Verify contractor's insurance certificate is valid and current • Ensure coverage amount is adequate for your project value • Understand exclusions (most policies do not cover design defects) • Keep all receipts and documentation for claims HDB Requirement HDB requires contractors to have at least $500,000 public liability coverage. Ask for proof before work begins. Cost Homeowner renovation insurance typically costs $200-500 for the renovation period. Compare policies from NTUC Income, AXA, and Tokio Marine.