Insurance Advice For Owner Builders

Owner builder insurance products are a must forAs an owner builder you can choose to assist your
anyone deciding to build their home. Don't get losttradesmen and builders with the construction. If you
with all the different protection and coverage offeredare injured or incapacitated during construction and
by different providers, find out which products youcannot attend your normal form of employment,
need. So you want to build your own house and addhaving the right personal accident insurance cover will
that personal touch to your home? This is becomingoffer you the right protection.
increasingly popular and ensuring that you have the3. Builders Warranty Insurance
correct insurance coverage is vital. The key to aOwner Builder Warranty Insurance mandatory
successful self-built project is to make sure that youinsurance required by the Home Building Act 1989.
are fully insured from the start.Although it is mandatory, the policy is for benefit of
The following insurance products are a MUST for anythe house purchaser and does not provide any cover
owner builderto the actual home builder
1. Construction & Liability InsuranceThis policy protects the subsequent owner from any
Also known as contract works insurance ordefective work on the property if you as the owner
construction all risk insurance which is insurancebuilder have died, disappeared or become insolvent.
protection for people renovating, building or extendingBuilders warranty insurance is mandatory insurance
their home. Construction insurance protects builderscover. It is essential to take out the insurance before
from most main risks that may be encounteredany work is started as otherwise the project will be
during the construction and building process. Thisdifficult to insure. Standard policies run for 12 months
includes weather related damages, fire, issues withbut, if the construction takes longer, extensions are
their workers or workmanship and more. (Consultusually available. This insurance is compulsory for all
your insurance broker to ensure what risks areresidential building works in excess of $12,000. If you
protected).build and sell your property within 6 years of its
The liability portion of this insurance is known ascompletion or renovation you will need to provide the
Public liability insurance. This protects the builder forwith residential owner builder warranty insurance.
their legal liability against injury or damage to thirdIt is required by law to be taken out when selling
party property. As an owner builder you arewithin the statutory period - Statutory period for
responsible for the site safety and overseeing buildingNew South Wales and Victoria is 6years and 7 years
works - without this cover you would be liable ifin Western Australia. A builder who sells within 6
anyone is injured at or near your building site.years of completion without any Insurance, or who
Although it is not mandatory to have constructionfails to attach an insurance certificate to the Contract
and liability insurance cover it would be risky not toof Sale can be fined, amounts over $10,000. If a
have it. Most local councils will however require youContract of Sale has been entered into without
to have this cover prior to commencing any buildinginsurance, the contract can be voided by the
work.purchaser at any time before completion of the
2. Personal accident or volunteer workers insurancecontract. It is therefore in your best interest to
coverageensure you have the right advice when building you
Building and construction sites are listed as beingown home.
amongst one of the more dangerous places to work.