Renovations can make a home more enjoyable while quietly increasing the cost to rebuild it. Underinsurance arises when the sum insured is too low for a covered total loss, and it can become more likely after work that changes materials, layout or quality.

Renovated Australian kitchen
Renovation records help revisit rebuilding assumptions.

Do not use the renovation invoice alone

The cost of a renovation is not necessarily the cost of rebuilding the entire home after a catastrophe. Demolition, approvals, professional fees, compliance and constrained local labour can all matter.

Include quality and hidden work

Custom cabinetry, stone, upgraded wiring, insulation and structural changes are easy to forget when estimating. Keep plans, contracts, variations and photographs so the home's current state is clear.

Review during, not only after, works

Some policies have conditions around unoccupied homes, structural works or contractor activity. Notify the insurer as required before major work starts, and check the sum insured again when the project finishes.