Are you an owner builder? If you are, one of the most important things you can do before the construction of your new home or renovation commences is to invest in an appropriate Owner Builder Insurance policy. But, what is owner builder insurance? More importantly, what are the benefits of owner builder insurance?
Owner-builder insurance is a customised insurance policy that provides financial protection for an owner builder. Who is an owner builder? Quite simply, an owner-builder is anyone who supervises a project or manages all or part of the construction of their home themselves. In fact, they might even handle some of the construction work themselves.
Well, professional builders always need to hold the appropriate insurance coverage for their businesses needs. Usually, this includes the likes of public liability and contract works. However, a lot of owner-builders skip this essential step in their construction project because they incorrectly assume that they don’t face the same risks as a licensed builder, that the contractors they engage with will have the insurance needed to cover everything. Or, they think their home and contents insurance will cover the risks associated with the owner-builder project. Each of these assumptions is incorrect.
In fact, a lot home and contents insurance policies will be null and void when you commence an owner builder project, or contain specific clauses that exclude any coverage for owner-builder projects. Quite simply, this means that owner builder insurance is an absolute must for anyone undertaking this type of construction project. This is regardless whether it’s a renovation or a new build. Your owner builder insurance policy will cover you for things like:
Without the right insurance coverage, you, as the owner-builder, will be held liable for any damage caused to anyone else’s property, or for any injuries caused to a third party. You will also be out of pocket should anyone steal or damage your supplies and equipment while your project is in progress.
Fortunately, your professional insurance broker will present you a quote that includes the following types of coverage:
Although, keep in mind that the specific policies included in your cover can vary based on your specific needs. For instance, the length of the job, the type of work being completed and the location are all factors that will be taken into account.
If you’re embarking on an owner builder project, finding the right insurance for your project’s needs is a must! Here at FD Beck we understand that navigating the owner-builder insurance scene can be difficult, which is why our brokers will do the hard work for you.
Ask us about your options today.