 Construction/Liability Insurance Cover
Owner Builder Warranty Insurance
Construction/Liability Insurance Cover
When building a new home or doing alterations and additions to your existing residence we recommend the following three types of insurance cover:
- Construction Insurance
- Public Liability Insurance
- Workers Compensation Insurance
Construction Insurance
This policy combines Material Damage and Public Liability into one insurance cover. The Material Damage section covers such things as fire damage, theft, malicious damage/vandalism, or storm damage to the building works. For no additional premium there is cover for Removal of Debris after a claim, Professional Fees and Expediting Expenses up to 10% of the construction value. The construction cost should be calculated on the full replacement value of the structure so that a major claim or total loss is fully covered.
It is also possible to insure your existing home against damage to the structure as a consequence of construction activities under the existing property section of this policy. We would suggest that you check with your current home insurer whether they will continue to insure your building whilst the alterations are taking place. If not this section is for you.
Public Liability Insurance
The Public Liability section of this policy covers personal injury or property damage to third parties at the building site during the period of insurance. Under this policy cover is also available for vibration and weakening of supports to neighbouring buildings once policy requirements for such cover are met.
Workers Compensation Insurance
Workers Compensation insurance is, by statute, mandatory in all states of Australia to cover any employees. Workers Compensation is not included in a standard Construction policy and must be separately covered under a policy issued by a licensed insurer or fund manager. We recommend that a minimum premium policy be maintained even if you don’t employ or plan to employ any staff. By maintaining such a policy you are protected against claims by “deemed employees”.
Three easy steps to obtain a quote:
- Download and complete the Construction/Liability Insurance Application.
- Download and complete the Workers Compensation Policy Request Application.
- Fax, email or post the completed forms to Brookvale Insurance Brokers.
We will email you a quote back as soon as possible. If you have any queries please call our office.
OWNER BUILDER WARRANTY INSURANCE
In New South Wales owner builders with a construction cost greater than $12,000 and who sell their property within 6 years are required to obtain Owner Builder Warranty Insurance. The policy covers the purchaser, or any subsequent purchaser of the property for defects in the event of death, disappearance or insolvency of the owner builder.
Documentation Checklist
As well as a completed application form, you will need to provide a Defects Inspection Report (no older than six months from the date of application). This can only be completed by a Registered Building Surveyor, Registered Building Inspector or accredited and insurer approved inspectors.
In addition to the above report, please also attach the following documentation:
- Completed and signed application form.
- Copy of the Council Building Permit/Approval or consent (for all works requiring owner builder warranty insurance).
- Copy of the Certificate of Occupancy or Final Notice of Completion.
- Copy of Certificate of Title or Council Rates notice.
- Copy of Termite Treatment Report.
- Copy of Electrical and Plumbing Compliance Certificates.
- Copy of Waterproofing Certificate.
- Copy of Department of Fair Trading Owner Builder Permit.
Building Inspection on completed Dwelling
The building inspector’s report on the completed dwelling will indicate the quality of the building works, the use of second hand materials and whether or not the works are complete. It is a completely different report to those that your engineer or certifier have provided during the construction process. This inspection report can be completed by an inspector appointed by you or the insurance company can arrange for an inspector to attend the site at your expense. Please enquire about the availability and cost of such a report in your area.
Note: Any defects, incomplete works or second hand materials listed in the Defect Inspection Report are excluded from this cover.
In order for us and our insurance company to provide you with superior levels of service, please ensure the following:
- The application form is completed in full
- All requested information/documentation is provided
- The application has been signed and dated by all relevant owners of the property
- The checklist is used to ensure compliance
Three easy steps to obtain a quote:
- Download and complete the Owner Builder Insurance Application.
- Collect the items referred to in the document check list.
- Fax, email or post the completed forms and documentation to Brookvale Insurance Brokers.
We will email you a quote back as soon as possible. If you have any queries please call our office.
|
