Taking on a construction project as an owner-builder is an exciting opportunity to bring your vision to life, but it also comes with unique challenges and risks. From accidental damage and theft to unforeseen weather events or third-party liability, there are many potential setbacks that can impact your project’s progress and budget.
Owner builder insurance can protect your investment from common threats like bad weather, water damage, vandalism, theft, public liability, and more. Coverforce take the complexity out of owner-builder insurance, providing you with reliable, great value cover so you can focus on bringing your vision to life.
What is Owner Builder Insurance?
Owner Builder Insurance (also known as Owner Builder Construction and Public Liability Insurance) is designed to protect individuals managing their own construction projects from a range of risks. This type of insurance helps safeguard your new build or renovation project, ensuring you are protected against unexpected incidents that could cause significant disruptions or lead to financial loss.
Owner Builder Insurance typically comprises of two key sections:
- Material Damage
Material Damage cover protects an Owner Builder for losses caused by hazards such as fire, storm, impact, wind, and water damage, vandalism, and theft (including materials left outdoors). - Public Liability
Public Liability Insurance provides protection against third party claims resulting from personal injuries and/or damage to property arising from your building project. Public Liability Insurance can cover both your legal costs to defend a claim and settlement costs in the event you are found legally liable.
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Additional Insurance Considerations
In addition to Owner Builder Contract Works and Public Liability Insurance, our team are fully licensed insurance brokers and can assist with you with any other insurance products you may require including:
Personal Accident Insurance provides income protection for workplace related disability caused by accidental injury or sickness. A typical policy can provide replacement income, homemaker benefits, loss of life benefits and rehabilitation/return to work assistance.
If you are physically working on your project site, and/or having friends or family help with any of the work, you'll also need Voluntary Workers cover. A typical policy can provide financial compensation and cover for expenses in the event of accidental death or disablement of someone providing volunteer work.
Workers Compensation Insurance can also be an important consideration. It is administered differently between states however a typical policy can provide financial assistance to anyone you engage for your construction work in the event they sustain an injury or become ill from their work.
Owner Builder Home Warranty Insurance benefits the subsequent purchaser of your property, not you as the Owner Builder. The policy provides cover in the event that you as the Owner Builder die, disappear or become insolvent, and the building works are incomplete or defective.
Frequently Asked Questions
An owner builder is an individual who chooses to construct a new dwelling, or renovate an existing one, on their own property without engaging a licensed builder. In essence, the owner builder takes on the role of a registered builder, assuming responsibility for overseeing subcontractors, and sometimes doing the work themselves.
In order to become an approved owner builder, you must apply for the required owner builder permit from your respective state.
Owner builders are responsible for any subcontractors, workers or visitors to the construction site and hence can be liable in the event someone gets injured. Insurance requirements vary for different states and every owner builder has unique risks with different insurance requirements.
No. There is no insurance product in the market for owner builders who are doing projects that are pool projects that are greater than 25% of the total construction cost. This includes pool surroundings, and pool houses.
The project value is the costs to complete your construction project. This includes the total cost of materials, fees, and labour.
Existing structures are structures that existed at the project site prior to works commencing. This includes garages, sheds & granny flats.
The insurance is valid during the construction period. Cover ceases on completion of the works or the policy expiry date, whichever occurs first.
There is no refund for early completion. Cover ceases on completion of the construction works or the policy expiry date, whichever occurs first.
The quote is valid for 30 days.
Once you decided which insurer’s quote you wish to proceed with, simply complete that insurer’s proposal, sign & return to - ownerbuilder@coverforce.com.au. We’ll send you a confirmation once the policy has been established.
No. Insurance companies do not offer stand alone Liability cover for owner builders.
No. Voluntary Workers can only be taken in conjunction with an Owner Builder policy.
No. There is no insurance product in the market for owner builders who are doing projects that are on an island that does not have road access from the mainland.
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At Coverforce, we understand what it takes to complete a successful owner builder project - that's why we work just as hard to protect them.
For more information or to speak to one of our brokers about arranging cover, please don't hesitate to reach out to your local office. Alternatively, you can simply fill out the form below and we will get back to you in 1 business day.
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