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09 Dec 2010 10:49
The costs of buying a new home can stack up pretty quickly once bond fees, registration costs and moving vans are taken into consideration. But if you decide to renovate the property you have, rather than buy a new one, be sure to tell your insurer, because your home’s value will increase if you remodel and renovate quite extensively.
“Make sure your coverage is still correct,” says Craig Young, national manager of insurance sales at bond originator ooba.
You might get so caught up in planning, building workmanship and finishing touches that you forget about the financial implications and possible new insured value of the property. As such, you might be underinsured.
A property insurance policy shouldn’t be calculated on what you paid to purchase a house but on what it would cost to build the property to the same standard.
Young came up with a few tips to bear in mind:
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