Understanding Property Renovation Insurance in Victoria >>

Understanding Property Renovation Insurance in Victoria

Before you start renovating, you need to decide whether you are going to use a Registered Builder or owner Build, there is no building category called Renovator/ DIYer.

Once you have decided, then you need to think about what insurances you require to protect you and your family. Australia requires builders to maintain a certain level of contractors general liability insurance before they can offer their services. Builders should hold property renovation insurance to ease the minds of their clients and provide themselves protection.

Homeowners Using a Registered Builder

Registered Builders are required to provide you Warranty Insurance if the contract value of the work is over $16,000

Builders Warranty Insurance

So where does a homeowner turn when they have a house built only to discover problems in the future? Generally, the answer would be the builder, but imagine having a situation where the builder is no longer available. He or she may now be deceased, unable to be located or insolvent. In this situation, the builder’s warranty insurance is available to the homeowner.

The second type of Insurance the builder needs to provide, has many names Builders Risk Insurance, Contract Works, Construction & Public Liability Insurance. Basically it protects the builder and homeowner in the event of a storm, water damage, fire, theft, vandalism and Public Liability where a third party is injured on site. It is vital that you ask the builder for a copy of this policy as it is not mandatory. Builders Warranty is required on signing the Building Contract.


Our experience shows that (a) the builder does not cover the existing part of your home not being renovated and definitely not your contents. And (b) over a certain contract value (eg $30,000-$50,000) neither does your Home & Contents Insurer. Our Renovators Home & Contents Insurance does, see our website.

Owner Builders

For Owner builders in Victoria and across Australia, Construction & Public Liability is required to protect them from fire, theft, storm, water damage, vandalism and public liability insurance as well, plus the existing part of the home not being renovated and contents.

Public Liability

Accidents happen. When a person is injured on account of work being done to a home, this insurance policy becomes of great help. When a builder or tradesperson does not have the coverage necessary to compensate the inured party, the Owner Builder may be held responsible if this type of insurance has not been obtained.

Again Owner Builders need to be aware that not all insurance policies are the same, most are builders policies where an owner Builder pays full price but in unable to claim on a lot of the benefits & check the excess as most claims are in the $4000 range so a $500 vs $1000 excess to save $50 can be expensive in the event of a claim.

Owner Builder Warranty is only required if the Owner Builder sells their home within 6 years of the Final.

Notify your Home & Contents Insurer, protect yourself fully.

BuildSafe Insurance Brokers provide specialised insurance for
builders owner builders, renovators, tradesmen and
building industry professionals…


Got a Question about Renovators Home and Contents Insurance? We’ve got the Answer!

The product – Renovators Home & Contents Insurance is designed to meet the needs of homeowners who engage registered builders to complete renovation works and where the existing home insurance (building, contents and public liability) are suspended during the renovations period. In these instances homeowners do not have insurance cover – most homeowners are not covered during these periods but may not be aware of the suspended insurances.

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