Rolling into the New Year means many Aussies have fresh plans for their homes with renovations remaining one of the most popular ways to create more functional, beautiful spaces. Whether it’s a sleek new kitchen, a modern bathroom upgrade, or even a full extension, preparation is essential – not just for timelines and budgets, but also for the impact upgrades may have on home insurance.

“Whether it’s an outsourced job or a DIY project – the biggest renovation mistakes usually happen before work even begins. Taking the time to plan your layout, budget and check how changes may impact your home insurance, can save homeowners a lot of stress down the track,” said Mervyn Hartley, Youi's Head of Product – Home and Small Business.

What to consider before renovating:

Kitchen renovations: Kitchen renovations are one of the most popular home reno projects among Aussie’s, notably due to how the space is used daily[1]. As such, it is important to consider planning the type of layout, workflow, aesthetics and appliances you desire before any work kicks off. Planning these steps first is important as these factors may have flow on effects for how much storage space you need, future functionality and your budget scope.

Bathroom renovations: Bathrooms are another popular renovation project and require upfront planning and consideration for things like plumbing work, space layout and budget. Bathroom upgrades can be slightly more complex even if you’re only undertaking cosmetic work, as this could impact things like waterproofing or plumbing which may require additional work[2].

Home extensions: Home extensions are a great way to maximise your living space without having to move house or consider a larger scale build. However, they require detailed planning. It’s important to set clear goals for your extension, a set budget and to seek professional help for more complex upgrades. Finally, checking building and council regulations is important, and communicating with your neighbours about the project is good practice.

Common mistakes to avoid and tips from Mervyn Hartley:

“Many homeowners can underestimate the complexity of renovations. Taking the time to plan properly, scope your budget, understand the practicalities and notify your insurer, can help avoid costly surprises down the track. Some important tips to avoid common mistakes may include:

• Don’t skip the planning phase – rushing in without a well-defined goal or budget can lead to costly redesigns and delays. Ensure you have thought through the goal of your renovation and scoped out an appropriate budget – including contingencies – to ensure that your project meets long-term needs and doesn’t encounter problems down the track.

• Consider a refresh over a renovation – before renovating it’s important to consider why you’re renovating, evaluating whether you need a full remodel or a refresh of the space. Cosmetic changes to a space such as new fixtures, fittings or a fresh colour palette can elevate the space in a more budget-friendly way without changing the fundamentals like the layout of a room.

• Check the insurance implications of your renovations – any upgrades to your home may increase the value of your home[3] and may impact your home insurance. It’s important to notify your insurer before renovating to ensure your policy reflects any increase in value or risk and to check your coverage for any damage or liability that may occur during renovations.”