Owner Builder Insurance
If you are planning to build a new home, renovate or alter your current property without engaging a registered builder to oversee the project, then you are classified as an Owner Builder.
This means that as an Owner Builder, you inherit the same risks, responsibilities, and the need for insurance as a registered builder.
Insurance for Owner Builders
As an Owner Builder you are responsible for coordinating construction work, managing site safety, and supervising any subcontractors, workers, and visitors to the site. Therefore, you can be held liable if someone gets injured or the building work is found to be defective.
Statutory Insurance requirements vary from state to state however all Owner Builders shoud consider the key products listed below.
Some additional risks, like 'unpaid workers' and 'deemed workers' require specific types of insurance, so it is important for Owner Builders to be aware of these too.
A Contract Works/Public Liability policy can help cover construction-related activities and assets of a project during the construction period. Cover includes accidental theft and damage of building works and third-party liabilities and compensation.
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.
