Poor workmanship can cost you dearly come claim time

The downside to DIY

Poor workmanship can cost you dearly come claim time

Auckland, 15 October 2013 – AA Insurance is advising customers to seek professional advice when making home improvements, as poor workmanship that contributes to the damage of your home, may affect any resulting claim.

In the last 12 months, AA Insurance has handled around half a dozen claims involving faulty workmanship – often the outcome of work done by the previous owner. Even if you haven’t done the work yourself, poor workmanship that’s found to have caused damage, or resulted in damage, to your home is unlikely to be covered come claim time.

Also, if you are doing work around your home that you’re not qualified to do, such as electrical work or adding an extension, it pays to hire a professional to find out about any legal restrictions and building consents. If not, a resulting claim may not be accepted and you could be left with a large repair bill. 

“While it’s still a very small proportion of claims received, they are often the ones that can have a big financial impact on our customers,” says Suzanne Wolton, Head of Customer Relations, AA Insurance.

“We’re concerned to see costly mistakes that could have been easily avoided. If you are buying a property, we strongly recommend you have a professional building inspection done before you put in an offer, as some renovation work can be overlooked by the untrained eye.”

One AA Insurance customer learnt this the hard way. They had purchased a home whereby the previous owner had installed the hot water cylinder under the house. To ensure the cylinder would fit into this space, a hole was dug so it could stand vertically. A subsequent storm allowed excess rain water to pool in the hole surrounding the lower part of the cylinder causing it to wear and burst. Sadly the faulty installation and unsuitable location of the cylinder was not noticed by the customer until it was too late, leaving them to cover the replacement cost of around $4000 themselves.

Home maintenance

As a homeowner, it’s important to bear in mind that you are obliged to ensure your property is well maintained, repaired and kept in good order.

“While the prospect of home maintenance feels like a chore, the pay-off far outweighs the work involved,” adds Suzanne. “Not only will regular maintenance help you to have a safer home for you and your family, it also protects your investment and makes sure your insurance cover stays in place.”

In another claim example, one customer had not maintained the roof and over time water had leaked through, causing the roof to rot. As a homeowner, the customer was responsible to minimise any loss or damage to their home, and ensure their property was well maintained in order for their home to be covered by insurance. As this was not the case, the customer had to cover the bill for extensive repairs both to the roof, as well as the resulting water damage.

Over the past year AA Insurance has also had at least a dozen storm-related claims whereby fences had deteriorated to a point where even a slight gust of wind could have caused the fence to blow over.  If a lack of maintenance has contributed to the damage, then a claim may not be covered or only a percentage of the costs will be paid.

“We encourage homeowners to read their insurance documents and ensure they understand and follow the conditions of their policy,” says Suzanne. “It’s worth noting that even if your claim is accepted, maintenance or workmanship issues run the risk of delaying your claim, or leaving you out of pocket.”

Maintenance tips to help keep your home in good working order:
• Ensure the roof is checked for any cracks, leaks and damage.
• Clear gutters regularly to prevent water backup. Are the gutters and drainpipes attached properly, and is water draining away from the house or garage?
• Check walls and timber throughout the home (and garage) for decay, dry rot, or water damage etc.
• Don’t let gardens build up too close against external walls of the house, and keep an eye on mature trees growing next to fences, foundations and power lines.
• Maintain your fences and retaining walls, especially if they are starting to shift or fall, and look out for any cracks or movement from walkways and steps etc.
• Check for movement between the shower wall and floor that may indicate a leak, and check an inexplicably high water bill in case of a leak or damage to water pipes.
• Are all power points, light switches and smoke detectors working properly?
• Look up: is there any water damage, mould, or blistering paint on your ceiling that could indicate a leaky roof?
• Remember to check your garage and other outbuildings you have listed in your insurance policy. If a structure is rotten, rusty, leaking or generally in need of repair, then get on to it!

ENDS

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