Construction insurance protects the owner builder during the building process, including malicious damage/vandalism, theft, fire damage, storm, wind and water damage. The Buildsafe policy also provides cover for demolition costs and professional fees in the event of a major claim (for up to 10% of the insured construction value) at no additional premium, which ensures that you will not be left out of pocket if a major claim occurs.

Public Liability Insurance protects owner builders against third party personal injury and property damage, that occurs during the period of policy.

Buying Construction and Public Liability insurance is no different to shopping for a new car. A Hyundai Excel doesn’t have the same features and benefits of Holden Calais and therefore there is a substantial price difference. Price is important, but not all insurance policies are the same. There is no point in investing in a cheap insurance policy if it doesn’t fully protect you in the event of a substantial claimable occurrence… which is the primary reason for having a policy in the first place! A substantial financial loss on uninsured building works or liability would cause financial ruin to most owner builders.

Note well: it is very difficult for you as an Owner builder to find an insurer to supply you insurance at lock up the smartest thing to do is take out the insurance at commencement, even though you are doubling up, it will be a lot, cheaper to do it this way than try to obtain the insurance at lock up.

Yes, it is available, generally but it will cost more! DO NOT start your project before you have the insurance in place, if you want to save money.

No, not all Owner Builder policies are the same

So before you buy on price, check to see whether you have cover for –

• Storm and Water damage
• Flood
• Is Extendable
• Has a low excess (most claims are around $4000)
• Subbies and not excluded
  · Public Liability ($5, $10 and $20 million)
• Will cover your existing home
• Contents Cover
• (optional) Voluntary Workers cover

We do!

This means you will be responsible for 50% of the loss you suffer (as well as any applicable excess) because your sum insured was only 50% of the value of your property required to be insured.

Your home has now become a building site, your home Insurance will cover you for small jobs but not necessarily. Check with your insurer to see what coverage they will provide.

It is vital that you check the specific policy wording of your Home and Contents Policy, as most insurers suspend the home insurance and public liability cover for renovation and extension work over a certain value e.g. $30k or complexity. This could affect the cover to the existing house for loss or damage as direct result of the renovations or extensions. Public liability cover could also be affected. If you are renovating or extending you should check your current policy wording carefully. When renovating your home the greatest risk is from storm, wind and water damage. These are the most common insurance claims.

Structural Defect

Any defect in the structural works which affects the stability or strength of the building or any part thereof and is attributable to defective design, defective or faulty workmanship and/or defective materials and which;
1. Results in a regulatory authority closing or prohibiting the use of the building or any part thereof.
2. Does or would prevent the continued practical use of the building or any part thereof.
3. Results in destruction of the building or physical damage to the building or any part thereof.
4. Results in threat of imminent collapse that may reasonably be considered to cause destruction of the building or physical damage to the building or any part thereof.

Structural Works

1. All internal and/or external load – bearing structures essential to the stability or strength of the building or any part thereof, including, but not limited to foundations, floors, walls, roofs, columns and beams.
This is known as the under-insuring trap. Do not try to save money by insuring your works for less than the actual replacement cost of a licensed builder carrying out the work. In the event of an indefinable event under the policy, (an event that is insured), and it is found that the sums insured are less than 90 percent of the amount required to be insured, the amount recoverable by you under this policy will be reduced by such proportions as the sums insured bear to 90 percent of the amount required to be insured.

Are subbies covered? Most policies do NOT cover subcontractors that you employ on site, that is it VITAL that you check their Public Liability insurance policy to make sure it is current, preferably keep a copy, to help you.

i. Have a minimum of $5,000,000 public and products liability insurance and relevant employers liability insurance

ii. Conduct a thorough safety inspection of the Construction Site prior to beginning any work or delegating any work

iii. Be required to comply with all relevant safety requirements applicable to the work they will be conducting on the Construction Site; and

iv. Be accredited or licensed where applicable for the work they or persons under their instruction and/or employment are performing.

v. Be accredited or licensed where applicable for the work they or persons under their instruction and/or employment are performing.

Yes, at Buildsafe Insurance Brokers our renovation Insurance does cover your contents. Don’t leave your valuable possessions uninsured while you are renovating.

Yes you are, our policy is unique and does protect you and your family in the event of a flood. With the recent floods it is particularly important that Construction Insurance QLD is taken out.