Home builders insurance policies

Building & Construction Insurance

• Failing to take adequate insurance cover is like driving a car with faulty brakes and bald tyres. You might get away with it, but there again ... A reputable insurance broker will advise you of your exact needs but here are a few of the covers you may need.
  
  In all cases make certain you have the cover you need. As an example a house built along the Darling Escarpment may well be covered for earthquake damage as well as wild fire and storm.

  
  
  • PUBLIC RISK All Owners
    
    Probably needed by all new home builders who may have any member of the public entering their property at any stage of construction, fitting or landscaping. Even a trespasser may be able to make a claim under public liability.
    
    
  • BUILDERS INDEMNITY Owner/Builder
    
    If a licensed builder constructs the house the owner usually receives seven years insurance against faulty materials and workmanship. Builders Indemnity varies for Owner/Builders. For all the details check with your insurance broker.
    
    
  • WORKERS COMPENSATION Owner/Builder
    
    Needed if any person or persons will be coming on to the property to carry out any paid task from construction to landscaping. Generally speaking if the owner employs a registered company (a Proprietory Limited) it is the responsibility of the company to insure the workers. If a person is not a company employee the owner directly employs the individual and so the owner must take workers compensation insurance on the individuals behalf.
    
    
  • BUILDINGS and MATERIALS Owner/Builder
    
    This is usually needed when a house is built to "lock up" by a Building Company. The policy should cover the period from when the owner takes possession of the house until they actually occupy the house. It is not unusual for this to be several months.
    
    
  • BUILDINGS and CONTENTS All Home Owners
    
    This insurance policy comes into effect from the time the owner actually occupies the house after receiving permission from the Local Government authority to take up residence.
    
    

  Most policies are effective for an initial period of twelve months and must be paid for accordingly. Check with your broker or directly with your insurance company.
  
  Back to: Builders Home Page