How to avoid common risks in home renovations

Home renovations can add value to a property, improve its street appeal, and create more space for comfortable living. However, without proper planning and management, renovations can quickly spiral into costly, stressful experiences. Here are some of the most common risks faced by renovators in Sydney—and how to avoid them.

1. Inadequate insurance coverage

One of the most common oversights during a renovation is failing to review your home and contents insurance. Many policies don’t automatically cover renovations or may exclude specific incidents during construction.

Before starting any renovation, homeowners should speak with their insurance provider to confirm the right level of coverage. Typically, two types of insurance are needed:

• Your own home and contents cover

• The builder’s construction insurance

Make sure the insurer is aware of the renovation plans in full. If not disclosed, any damage or incident may result in denied claims.

DIY renovators or homeowners supervising the work themselves should be especially cautious—many policies won’t cover these scenarios unless specifically noted.

2. Rising costs from project delays

Delays in sourcing materials, managing trades, or scheduling inspections can cause costs to climb quickly. Poor planning and lack of coordination are often to blame.

Choosing a reliable, experienced builder with strong project management skills is essential to keep your renovation on schedule and within budget. They should be able to coordinate all elements of the job—from ordering materials to managing timelines for each trade.

3. Overcapitalising on renovations

It’s easy to get carried away with upgrades, but it’s important to be realistic about the value your renovation will add—especially if you plan to sell in the next few years.

Spending more than the market value of your property can make it difficult to recover costs later. Always compare your budget with recent sales in your area to ensure your renovation goals align with your property’s potential value.

4. Not using a building cost estimator in Sydney

A growing number of Sydney homeowners are turning to professional building cost estimators to avoid budget blowouts.

By engaging a quantity surveyor or cost estimator early in the planning phase, you gain access to a detailed breakdown of material, labour, and project-related costs. This helps:

• Identify risks before they become expensive problems

• Avoid underestimating key elements

• Control budgets with greater confidence

An accurate cost plan is one of the best tools for preventing overspend and keeping your renovation goals achievable.

Renovating your home is an exciting opportunity, but it comes with risks if you’re not prepared. Ensure you have the right insurance, plan for delays, avoid overcapitalising, and work with a reliable building cost estimator to keep your project on track and within budget.

Use a building cost estimator and get more clarity over your building costs

Construction cost estimators like Newin Building Estimating Services remove much of the hassle and uncertainty of understanding costs and budgets when building or renovating.

Across NSW and Victoria, we help home builders, project commercial and residential builders accurately estimate construction costs.

Call today to find out more.

Other useful links:

• Construction Estimator Melbourne
• Construction Estimator South Melbourne
• Construction Estimator North Melbourne
• Construction estimator Sydney
• Construction Estimator Sutherland Shire
• Construction Estimator Box Hill
• Quantity Surveyors Parramatta
• Quantity Surveyors Northern Beaches