What does that mean?
If you are buying Owner Builder Construction & Public Liability Insurance. By 30 year Industry expert Phil Graf. Well, it can mean a number of things, cheapest price, best value for money, more benefits than any other policy.
So the answer to the question, what is the ‘best owner Builder policy’ will depend on what you want! It Is unlikely that if you want the most benefits you will get have the cheapest policy, Let me explain.
To set prices, insurers use actuaries to access the likely chances of claims in a product, broken up into the various parts. E.g, fire, theft, vandalism etc.
If we take theft, this is the most claimed part of a Construction & Public Liability policy.
So if an insurer wanted to offer a real cheap policy they would exclude theft – but that would be no good for you, because you have a far greater chance of theft while building than at any other time – but it would be the cheapest policy!
As you can see, it can be a complicated process to marry ‘price & benefits’ before you buy the policy.
The ‘cheapest price’, that should be easy to understand – $1200 vs $1000 policy, I will buy the $1000 policy?
But what am I covered for? What is included in the policy? What can I claim for? E.g. in the event you have legal action taken against you as the result of subcontractors actions – are you covered? Or one worker injures another worker onsite, who takes action against you, the owner Builder.
Is this included In the cheapest policy?
Best value for money – so this is a trade off between reducing benefits for a reduced premium e.g. Not covering vibration, removal & weakening of support, yet in Victoria projects can require insurance for Protective works.
Limitation of the liability cover to the project site only, what happens if you are picking up materials and you drop them on someone or a car etc – you have no cover’.
Save Money – Less Cover – MORE RISK
More additional benefits Extendable policy, most policies are for 12 months only, 30%-40% of Owner Builders take longer than 12 months and therefore will be unable to insure their project as it nears completion.
Contents cover, when renovating this is the most dangerous period for theft – you NEED cover!
Is this available as part of the policy offering?
What is the best Owner Builder insurance? As you can see, is no easy answer. You need to be aware of the cover and additional benefits that give you the maximum protection in the event of a claim.