The following information will help owner-builders better understand the importance of having adequate insurance coverage. Firstly, what makes someone an owner-builder?
Definition of an Owner-Builder
An owner-builder is someone intending to build a new house, renovate, or extend an existing property on their own land. They intend to do this without a registered builder. An owner-builder is responsible for obtaining building permits, supervising subcontractors, and/or undertaking the building work. They must ensure the work meets building regulations and standards. They usually need an owner-builder permit when work costs more than $10,000 and one can be obtained from their respective state’s building authority. NSW Fair Trading has a wealth of info about owner-builder requirements that can be found at this link:
Why do I Owner-Builders often overlook Construction Insurance?
Licensed builders are usually well covered with Public Liability and various forms of Construction Insurance. However, owner-builders often neglect insurance. Why is this so?
- They often don’t realise they face the same risks as a licensed builder.
- They mistakenly assume the contractors they engage will have enough insurance coverage.
- Some owner-builders mistakenly believe their existing Home and Contents insurance also includes coverage of all and any risks associated with an owner-builder project.
It’s important to understand your home and contents policy. Many policies don’t cover damage or loss caused by construction work. Owner-builder insurance provides options that can take care of any deficiencies in your home and contents policy.
What types of Construction Insurance are required for Owner-Builders?
Owner-builders are responsible for any subcontractors, workers, or visitors to the construction site. You can be liable for damage caused to other people’s property but most importantly you can be liable for injury caused to a third party. The following are a few types of coverage you should be aware of when considering single-project construction insurance for owner-builders.
- Public Liability
- Injury and Accident (for the owner-builder & voluntary workers)
- Workers Compensation
- Existing Structures
- Tools and Equipment
Morgan Insurance will discuss all your construction needs to ensure you’re securely covered under the single-project construction insurance policy.