Residential Owner Builder Insurance
Insurance for Owner Builders provides cover for Material Loss or Damage to the home and Liabilities to Third Parties arising from the project.
Owner Builders who build new houses or make renovations to their existing properties will require, in most cases a permit from your state or local authority to undertake the build or renovation.
Owner Builder Insurance Cover
Insurance for an Owner Builder construction project will provide coverage for events such as Fire, Flood, Storm, Water, Impact, Malicious, Cyclone, Wind and Accidental Damage and Liabilities to third parties. You need to make sure that the insurance commences before the project starts and the Contract Value of the work and the Existing Property are insured where necessary.
The length of a project is also required, which in some cases can be up to 24 months.
How to become an Owner Builder
We are sometimes asked questions that relate to the process of being an Owner Builder. To assist, we provide details of how to become an Owner Builder in each state and territory.
- QLD - Rules and Regulations overview
- NSW - Building and renovating home
- VIC - Information on Home Builder certification
- TAS - Homeowner building project permit
- SA - Owner responsibilities under Development Act 1993
- WA - How to apply for owner-builder application
- ACT - Licensing requirements for Owner builder
- NT - Certification process for home owner
Some common Questions and Answers relating to Owner Builder insurance is provided below.
Home Building Insurance – Does this cover me for renovations and refurbishments
Generally residential home building insurance policies do not provide coverage for damage to your existing home while a building is undergoing construction. With some policies there are low dollar value limitations that provide a limited form of coverage for minor renovations or refurbishments of your home.
An advantage of having a proper Owner Builder policy is that both the Existing Home Property and the work itself can be insured under the one policy.
My contractor is insuring my home whilst he does renovations. Is that acceptable?
If you do have the contractor take out insurance, and they have a Liability policy that provides coverage for property damage that they cause they are liable for, you need to realise that this insurance only activates subject to the tradesman being liable. If they are not liable, and your existing home insurer is not providing coverage to your home due to the renovations occurring, you will not be insured. You do need to check the contractor’s policy carefully.
Another potential issue is that when you have multiple contractors, it can be challenging to stay on top of all the insurance details of each contractor. For simplicity, having the one policy that you know that you are insured under is of great benefit.
For a no-obligation quotation of your Owner Builder insurance coverage, please complete our quotation form, and contact us if you have any queries.