Building

What type of insurance do i require?

The main insurance policies are:
1) Construction & Public Liability Insurance
2) Workers Compensation Insurance
3) Home Warranty Insurance (see also: selling your home)

Make sure that you read the Insurers policy documents so that you fully understand the coverage and all the policy exclusions and conditions.

What is Construction Insurance?

Construction Insurance provides coverage for Fire, Storm, Theft and Malicious Damage to your building works which is under construction and to the associated building materials. It should also include Public Liability Insurance which provides Personal Injury and Property Damage to third parties on the building site during the period of insurance.

Under this type of policy you will be required to provide the construction cost of your project. It is very important that you ensure that this amount represents the total replacement and rebuilding cost of your project. Be careful in estimating this amount as most insurance policies include penalties for under insurance.

What is workers compensation insurance?

Workers Compensation Insurance is by statute mandatory in all States of Australia to cover loss of income due to an injury to employees. Please check with your State Workers Compensation Authority for further information.

You may be required under State Law to take out a Workers Compensation policy for “Deemed Employees”. This often extends to include contractors and subcontractors who you contract/employ.

For more information on workers compensation insurance for your state, please view the Australian Government Website

When should i activate these insurance policies?

It's very important that you arrange all the insurance policies prior to commencing your project. Many Insurers do not provide insurance policies to projects that have commenced.

• Check that the Insurer is a major Australian Insurance Company
• Check that the Insurer can extend their policy period past 12 months for uncompleted projects.

Do contractors & subcontractors need insurance?

Only employ the services of registered/licensed contractors and sub-contractors that are fully insured.

Request that they provide you with a copy of their current insurance policies and trade licenses. Policies should include: Public Liability Insurance, Workers Compensation policy (or Income Protection / Disability / Personal Accident Insurance Policy). There are other insurance policies that some contractors are required to provide to Owner Builders including Home Warranty Insurance. This is usually applies for works that total over $12,000 in cost. Please check with your state building authority for further information.

What if i'm building on or near my property boundary?

If you are building close to or up to the property boundary you should obtain Adjoining Property Protection Insurance. This type of insurance provides cover for damage to adjoining properties due to vibration and weakening of supports during the period of the insurance and extends for a period of 12 months post construction completion. Please check with your State Building Authority for further information as you may be required by state/local law to obtain this insurance.

This type of boundary protection insurance is not generally included in a Construction Insurance Policy unless approved by the Insurer. You will need to specifically request this from an Insurer in order to activate the coverage.
Insurers require that you arrange and provide completed building/property condition report on your building and the neighboring properties. This report needs to be conducted by a registered/licensed building surveyor/inspector/certifier.

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