PROTECT YOUR PROJECT OWNER BUILDER INSURANCE IN NSW

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PROTECT YOUR PROJECT
OWNER BUILDER INSURANCE IN NSW
Ownerbuilderclub.com.au
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ABOUT US
Owner Builder Insurance NSW is Crucial! During
our recent QA session with Mark Adams from
Allrisk Insurance (now Coverforce), we gained
valuable insights into why owner builders need
insurance. Mark stressed the importance of this
coverage, likening it to the essential protection
registered builders have. He pointed out that, as
an owner builder, you assume all the
responsibilities and risks typically managed by
professional builders.
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THE TYPES OF INSURANCES FOR OWNER BUILDERS
PUBLIC LIABILITY AND FULL MATERIAL COVER

• Public Liability and Full Material Cover are two
  distinct sections of the same policy. One
  section, Contract Works (Material Cover),
  protects your building materials, while the
  other, Public Liability or Legal Liability,
  safeguards against legal responsibilities.
• Public Liability is a crucial insurance for Owner
  Builders, often mandated by Councils.
• Material Cover provides protection in cases of
  fire, storm, earthquake, malicious damage, or
  theft of building materials. This coverage may be
  necessary if you're securing financing for your
  project, as banks prefer to see material
  protection in place.

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WORKERS COMPENSATION

• Owner Builder Insurance typically recommends
  Workers Compensation in certain states and for
  specific Owner Builders only.
• The main Workers Comp risk for Owner Builders
  arises when working with Sole Traders.
• This QA provides an in-depth look at Workers
  Compensationdefinitely worth reading!

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GROUP INCOME PROTECTION (OR VOLUNTARY WORKERS
INSURANCE)
This policy applies when an Owner Builder has
friends or family assisting with unpaid work on
the building site, making them classified as
volunteers.
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HOME WARRANTY INSURANCE

• Home Warranty Insurance is not necessary during
  an owner-build project.
• However, if an Owner Builder decides to sell
  their home, Home Warranty Insurance becomes a
  requirement.
• Additionally, the rules for Home Warranty
  Insurance vary by state, so if you plan to sell
  your owner-built home, its advisable to consult
  with an Owner Builder Insurance provider.

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WHAT IF I'M AN OWNER BUILDER DOING AN EXTENSION
OR RENOVATION?

• Don't assume you're automatically covered under
  your existing home insurance policy, as most
  policies exclude any loss or damage to the
  existing structure that results from construction
  work.
• In Australia, every insurance policy includes a
  Duty of Disclosure, which requires you to inform
  your insurer if your risks have significantly
  changed.
• Therefore, if you're planning an extension or
  renovation, it's essential to contact your home
  insurer to notify them of your project, provide
  the estimated value, and confirm whether they
  will cover any potential damages to the existing
  structure.
• Additionally, check if your policy will remain
  valid throughout the construction process.

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HOW LONG DOES OWNER BUILDER INSURANCE LAST?
Be very cautious, Owner Builders, as not all
insurance companies offer extensions for Owner
Builder Insurance. These policies are typically
issued for 6 or 12 months and will expire at the
end of the selected duration. While some insurers
may provide extensions for a limited period, not
all do. It's important to choose an insurer who
can extend your policy if your project takes
longer than expected within the insured timeframe.
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CONTACT US
hello_at_theownerbuilderclub.com.au
www.ownerbuilderclub.com.au