Hi Kaz

I'm an insurance broker (although my expertise is more geared to commercial than domestic insurance) but most of the household policies I'm aware of automatically allow up to 60 days unoccupancy – after that they generally pose higher excesses for certain perils such as burglary, malicious damage etc.  It sounds like your insurer is being a bit harsh. Most policies also have a clause about what they will and won't allow during renovations or altertions to the building.

The trouble you will be faced with is that not many insurers, I know of, will take on a new policy where the premises are unoccupied and being renovated. Firstly I would get hold of a copy of your PDS from your current insurance company and read what it says in the small print. Trust me, staff at insurance companies often don't know what's in their own policy wordings. Read the sections relating to unoccupancy and renovations. You could also try negotiating a higher excess with your current insurer of say, $1000 – $2000. Otherwise I'd suggest putting your contents in storage while the renos are going ahead.

Hope this helps
Deb