Many homeowners assume that coverage for their home renovation can be cancelled the moment the last contractor leaves. In practice, ending renovation-related insurance too early can expose you to risks that only surface after works are completed. Knowing the period your overage should remain active helps prevent costly gaps during the most overlooked phase of renovation.
Why Renovation Risks Do Not End on the Completion Date
Renovation defects and damage often emerge days or even weeks after handover. Water leaks may only become visible after repeated use, electrical faults may surface under load,
and hairline cracks can widen once the structure settles. Coverage for your home renovation is designed to protect against these delayed issues, which standard home insurance may not immediately recognise as covered events.
In addition, disputes with contractors frequently arise after completion. Rectification works, re-entry by contractors, or partial dismantling of finished areas can reintroduce risks similar to those during active renovation. Cancelling coverage too soon can leave homeowners exposed at precisely the moment liability becomes unclear.
Typical Post-Completion Coverage Periods Explained
Most insurers recommend keeping your home renovation active for at least 14 to 30 days after completion. This buffer period allows time to identify defects, test installations, and resolve outstanding issues without transferring all risk back to a standard home policy prematurely.
Extending coverage to 60 or even 90 days is often more appropriate for larger or more complex renovations, such as structural alterations or full-unit overhauls. This approach is especially relevant when multiple contractors are involved or when works affect plumbing, waterproofing, or load-bearing elements.
When All-Risks Coverage for Your Home Still Matters After Renovation
All-risks coverage for your home is particularly valuable during the post-completion phase because it is designed to respond to unforeseen damage rather than named perils only. Once a newly installed fixture fails, a concealed pipe bursts, or renovation debris causes damage during final cleaning, all-risks coverage offers broader protection.
Homeowners who downgrade instantly to standard home insurance may discover that certain losses are excluded since they are renovation-related or linked to craftsmanship. Keeping all-risks coverage for your home active ensures continuity while responsibilities are still being finalised.
Factors That Affect How Long Coverage Should Remain Active
There is no single rule for all renovations. The appropriate duration depends on several factors. The scale of renovation is a primary consideration, with significant works requiring extended coverage periods. Occupancy status also matters; homes that were vacant during renovation often need additional post-completion protection before standard use resumes.
Another factor is the defects liability period specified in your contractor agreement. While contractors may be responsible for rectification, homeowners still face immediate damage risks. Coverage for your home renovation acts as a financial safety net while fault and liability are being assessed.
Transitioning from Renovation Coverage to Standard Home Insurance
A controlled transition is better than an abrupt switch. Homeowners should notify their insurer once renovation works are certified complete and confirm when renovation-specific coverage ends. Ideally, standard home insurance should be adjusted to reflect the renovated value of the property before renovation coverage lapses.
This overlap ensures there is no moment where the property is uninsured. It also allows insurers to reassess sums insured, especially if renovations significantly increased rebuild costs or upgraded materials.
Common Mistakes Homeowners Make
One common mistake is assuming that contractor insurance replaces coverage for home renovation. Contractor policies typically protect the contractor, not the homeowner. Another mistake is cancelling all-risks coverage for your home immediately after final payment, without considering delayed damage or testing periods.
Homeowners also underestimate how long it takes to identify craftsmanship issues. Problems discovered after coverage ends may fall into insurance grey areas, leaving claims rejected.
Conclusion
Coverage for your home renovation should not end the moment work stops. Keeping it active for at least 14 to 30 days, and longer for major renovations, helps protect against delayed damage and post-completion risks. Maintaining all-risks coverage for your home during this transition ensures your investment remains protected until the renovation truly settles.
Visit Income Insurance and let us ensure there are no post-completion gaps in your home insurance.