VITAL INSURANCES FOR OWNER BUILDERS.
Through our specialised Owner Builder Insurance Service Provider, we can provide you with the following vital insurances.
OB Construction and Public Liability Insurance.
It is required to organise this important insurance BEFORE you commences your project.
The public liability aspect of this insurance covers you if a family member or member of the public is injured as a result of the building work. You are liable because you own the property.
As you are intending to be an owner builder, or to contract out any type of building work (for which you remain responsible for coordinating) it is strongly recommended that you protect yourself by taking out Owner Builder Construction and Public Liability Insurance.
Workers Compensation Insurance.
Owner Builders should take out a Workers Compensation Insurance Policy and ensure that they are fully covered the people they engage to carry out work. Any contract is engaged by an owner builder may be deemed to be a work of that owner builder.
OB Volunteer (unpaid) Workers Insurance.
If you are planning to do work yourself, or to have family, friends or mates help you for FREE, put in place loss of income and permanent disability or death protection for up to 10 'volunteer (unpaid) workers' on your building site.
A 'volunteer' worker is a personal friend or family member, who is helping you on-site without being paid. This is practical and peace of mind insurance in a worst-case scenario that they get injured or even killed whilst assisting or being on your construction site.
To organise Owner Builder Personal Accident and Volunteer Workers Insurance, CLICK HERE, to obtain a FREE QUOTE.
Contract Works Insurance.
This insurance should be obtained by licensed builders and contractors you properly engage and receive a receipt of payment. It is so your protection and covers loss or damage to materials and work completed. If the builder or trade contractor does not have this type of insurance, you may risk inconvenience, time delays and disputes if materials are damaged or stolen.
Insurance under the Home Building Compensation Fund.
Does the total contract sum, including materials supplied by the contractor, or each contractor exceed $20,000 ? If so, each licensed contractor (builder or tradesperson) who contracts directly with an owner builder to do residential building work must provide insurance under the Home Building Compensation Fund (previously called Home Warranty Insurance) from an approved insurance provider.
You as the owner builder should receive a copy of the certificate insurance from the licensed contractor before:
- work starts
- you pay any money (be sure you obtain a receipt of payment)
Owner Builder Home Warranty Insurance (when constructing).
An owner builder cannot take out this insurance themselves. To read what it is best to do whilst in the construction or building phase, CLICK HERE.
Selling your Owner Builder built project in NSW is no longer covered by insurance.
WARNING: Insurance under the Home Building Compensation Fund is no longer available for building works carried out by an owner builder. Should an owner builder’ or a successor in title to that (owner builder) person decide to sell their home within seven (7) years and six (6) months after an Owner Builder Permit was issued, the Contract Of Sale must include a note (a consumer warning) stating that “an Owner Builder Permit was issued in relation to the land on (the date that Permit was issued)”.
Work done under an Owner Builder Permit is not required to be insured under the Home Building Act 1989 unless the work done by a contractor, or contractors, to the owner builder individually is worth more than $20,000 each. Then that Home Building Act insurance cover is provided by the proper engagement and payment of the licensed contractor or company.
If the consumer warning is not included in the Contract of Sale, the purchaser can void the Sale Contract before Settlement.
WARNING: As an Owner Builder you are guaranteeing the work you undertake if you sell within 7.5 years. The next immediate owner of the property is entitled to the benefit of the statutory warranties set out in the Home Building Act 1989, and can take you, the owner builder, to the NSW Civil and Administrative Tribunal to enforce their statutory warranty rights. This may result in a money order against you.
Owner Builder Home Waranty Insurance (when selling) in VIC and WA.
This insurance is required in your Sale Contract in VIC and WA usually when selling within six (6) years of obtaining your Practical Completion or Occupation Certificate.