To learn about owner builders insurance, construction covers and contract works insurance please read the cover options and implications below.
Construction Insurance Construction Insurance is also known as Contract Works Insurance, or Construction All Risks Insurance. It is an important cover for people building, renovating or extending their home.
What does Construction Insurance cover?
Construction insurance covers the main risks encountered during the building process, including:
Fire, storm, impact, wind and water damage, malicious damage, theft, including materials in the open air.
The policy also provides cover for demolition, removal of debris costs and professional fees.
Warning - Is your existing house actually covered?
We can insure your existing home during the renovations or extentions to your dwelling as an existing structure on your contract works insurance.
We are NOT able to provide cover for your contents.
Generally, your existing home insurer will not cover your existing structure/s (i.e. house) during the course of major renovations or additions.
You must check with your household insurer to determine if your policy still protects the existing structure during the period of the renovation or extention.
You should advise your Building and Contents Insurer of the estimated cost of the work you will be carrying out and obtain confirmation in writing from your insurer if they agree to provide cover.
A major trap is underinsuring the project.
The construction policy should cover the replacement value of the works, not just your construction costs which doesn't take into account your time, labour and the "sweat equity" that you put into the project.
A lower premium based on your construction cost only could cost you thousands of dollars in the event of a major claim.
Do you wish to build it again for nothing?
We recommend you insure for the full replacement value, not your estimated cost of building, so that you will be covered adequately
What does Public Liability Insurance cover?
Public Liability Insurance covers third party personal injury and property damage that occurs during the period of the policy for which you are legally liable.
Owner builders are responsible for site safety and co-ordination of their building works.
It is vital that you take out public liability insurance, because you could be sued for hundreds of thousands of dollars if someone is injured at or near your building site caused by your negligence.
This also covers damage to other people’s property.
Is Construction and Public Liability Insurance compulsory?
As a general rule, the insurance is not compulsory, however it would certainly be prudent to have this cover.
Some councils require you to have a Public Liability policy before they will allow works to commence.
If finance is being obtained, the financier will require evidence of a construction and public liability policy. You should have their name noted on the policy. We can arrange this at no additional charge.
We can also insure vacant dwellings that have construction work being done.
Builders insurance: tradesman public liability insurance.
You could lose your block of land, new home and more, to compensate this public liability claim against you - because you did not take out construction and public liability insurance. NOTE:You should obtain a certificate of currency from any sub-contractor tradesmen working on your project to ensure that they have Public Liability cover before they commence work.
For Example - You hire a contractor to remove some large trees on the site and a tree falls on the house next door.
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