Owner Builder Insurance

Owner Builders routinely go without insurance. Why?

• They are completely unaware that they will face the exact same risks as a licensed builder
• They incorrectly assume that the contractors they engage will have enough insurance coverage
• Some Owner Builders are of the mistaken belief that their existing Home and Contents insurance also extends to cover all and any risks associated with an Owner Builder project*

*Most Home and Contents policies have exclusions against liability arising from construction work, and many policies also become either seriously compromised or completely invalidated during a construction project. Owner-Builder insurance provides options that address all of these deficiencies.

Most owner builder projects need a combination of cover types. The right mix depends on your project, your state and how you are running the build, but the policies below are the ones owner builders ask us about most.

Contract Works Insurance

Also known as works insurance or construction risks insurance, this covers the building work itself while it is under construction: your materials, the partially completed structure and site facilities against events like fire, storm, theft and malicious damage. If the incomplete build is damaged, contract works insurance pays to repair or replace it so your project can continue.

Public Liability Insurance

As an owner builder you are generally the person responsible for damage caused to anyone else’s property and for injury to third parties who visit or pass by your site. Public liability insurance covers your legal liability for these claims, including the cost of defending them. It is the cover most commonly required before site works begin.

Voluntary Workers Insurance

If friends or family help on site as unpaid volunteers, voluntary workers insurance covers them if they are injured while helping with your project. Depending on your state and project, this cover is automatically included in your quote where applicable.

Insurance requirements for owner builders differ between states and between councils, but as a rule you should be ready to show evidence of Contract Works and Public Liability insurance before construction begins. Here is how it works in the states we operate in.

If you are building or renovating in NSW with work valued over $10,000, you need an owner builder permit from NSW Fair Trading. Councils and private certifiers will generally require evidence of contract works and public liability insurance before works commence.

For building work valued over $11,000, Queensland owner builders need an owner builder permit from the QBCC. Most building approvals require contract works insurance to be in place before work starts.

Owner builders in WA need owner builder approval from the Department of Mines, Industry Regulation and Safety. Local government will typically ask for evidence of contract works insurance as part of the building permit process.

Is owner builder insurance a legal requirement?

Requirements vary by state and council. In practice, most councils, certifiers and building approvals require owner builders to hold evidence of Contract Works and Public Liability insurance before works commence. Even where it is not strictly mandated, as the owner builder you carry the same legal exposure as a licensed builder, so building uninsured is a serious risk.

Does my Home and Contents insurance cover my build?

Generally, no. Most Home and Contents policies exclude loss or damage arising from building works, and major renovations can even affect your existing cover. Assuming your existing policy will respond to a construction claim is one of the most common and costly owner builder mistakes.

My trades have their own insurance — am I covered?

No. Your trades’ public liability policies respond to their work and their negligence, generally only while they are on site. They do not cover your liability as the person managing the project, damage that occurs outside their working hours, or the build itself. Your own owner builder policy sits above the policies of the people you engage.

How much does owner builder insurance cost?

The premium depends on your project: the estimated cost of works, the construction type, how long the build will take and your state. Because every project is different, the fastest way to get an accurate price is a free quote — it only takes a few minutes and there is no obligation.

When should I arrange owner builder insurance?

Before construction begins. Cover normally needs to be in place from when site works start until the works are complete, and councils and certifiers will generally ask for evidence at the permit or approval stage. The safest approach is to arrange insurance while you are finalising your owner builder permit.

What happens if something goes wrong and I am uninsured?

You are personally liable. Damage to a neighbour’s property, an injury to a visitor, theft of materials from site or storm damage to an incomplete build can each run to tens or hundreds of thousands of dollars. Owner builder insurance transfers those risks to an insurer for the duration of your build.