Part 2. Continuing our explanation of insurance terms for you to compare and access when reviewing Owner Builder policies.
Our theme of Check, Check, Check before you buy, to make the wrong decision could cost you and your family hundreds of thousands of dollars in the event of a claim.
Are my sub-contractors covered?
As an Owner Builder all you want to ensure is that if any of your sub-contractors is sued and you (Owner Builder) are joined to the action – you (Owner Builder) are covered.
As some policies, exclude sub-contractors then write them back in with conditions – registered, must have minimum Public Liability cover, experienced [add the sub-contractor to the Owner Builder as others joint Insured.]
If the Sub contractor is injured on site, and because he is listed as the insured, he will sue you (Owner Builder) and the Policy will NOT protect you (Owner Builder). So now you (Owner Builder) are Liable for any actions of the sub-contractor plus some exclude ANY Claim by an employee of the sub-contractor.
This can be very confusing as to what’s in, am I covered, will I be cojoined with the sub-contractor, employees not covered? Best to take a policy that covers Sub-contractor negligence, no if’s and buts!
CHECK CHECK CHECK
Am I covered for Flood?
Again, Flood is a very subjective word and some policies cover storms causing flood, others will not. To avoid the confusion, we suggest you ask the following question and get the answer in writing. Yes or No. Am I covered for Flood, not just any riverine flood, but any water escaping from lake, river creek, natural watercourse (Even old creeks that may be a road, gutter or reserve now) canal dam, reservoir?
Check, Check, Check
When Renovating, are my contents covered?
If you have rung your Home and Contents Insurer, you would have been informed that once you reach their threshold (As low as $2000-$20 000) for renovation work, you do NOT have insurance on your contents! (And your home) Will an Owner Builder Construction and Public Liability Policy cover your contents while your home is being renovated? – No! But we have one Policy that will give you conditional cover for contents while renovating. Once again, we want to stress that you (Owner Builder) read your Product Disclosure Statement, ask that answers to your queries to be put in writing so that you know that you have cover.
Buildsafe Sub contractors – if you (Owner Builder) are joined in an action for negligence – you are covered! Flood – Covered. Contents – Covered