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owner builders page
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Warranty insurance provides compensation for the end owner if a
licensed
builder or Owner Builder carries out defective building work and/or if the
contractor
is unable to finish the work. In some states this is known as Home
Owners Warranty Insurance. Its parameters and statute of limitations
varies from state to state. You should inquire at your Local
Council or your State’s Department Of Fair Trading or Consumer
Protection for further
information. Builders or
Tradespeople who contract directly with an Owner
Builder to do residential building work must provide home
warranty insurance from one of the approved insurance providers. Insurance is
required where the cost of that work exceeds $12,000. When an
Owner Builder decides to sell their home within 6 years
after completing the work, the owner-builder will need to take out home warranty
insurance where the market value of the whole project (labour and materials) was
more than $12,000. The sale
contract must: include a
note that an owner-builder permit was issued in relation to the work; and
that the
work done under the permit required home warranty insurance, and
have the
home warranty insurance certificate attached. For
information about where to obtain home warranty insurance, go to
the approved insurers page. The
insurance providers may require documentation in order to assess eligibility for
home warranty insurance on your owner-builder work such
as: copy of the
owner-builder permit, copy of the
building application or development approval from council, or a completion
certificate, copy of all
mandatory inspections, copy of electrical plumbing certificates,
copy of the
land title, and building
inspection report. Owner Builders are considered to be licensed builders and as
such should take out a workers compensation insurance policy to make sure they
are fully covered in respect of persons they engage to work for them. Any
contractors engaged by an owner-builder may be deemed to be a worker of that
owner-builder. Generally, people
carrying on their own business, or tradespeople, such as plumbers, electricians
and builders, have their own insurance. To be sure that you are protected always
check that any licensed contractor you hire has their own workers compensation
policy. It is not enough to ask a builder or tradesperson if they have
particular types of insurance. You should ask to see the insurance certificates
before you sign the contract. Workers
compensation policies may be obtained from the following
insurers: Construction
risk or builders all risk insurance This covers
you the Owner Builder for loss or damage to your materials
and work. It's important this insurance is in place for your protection.
If you don't have it, you may risk incovenience, time delays and disputes if
materials are damaged or stolen. Cost of sheds, tools, equipment and removal of
debris should also be taken into account when obtaining this policy. Contractors
engaged by you should also have this type of insurance for
themselves. If you
intend to be an Owner Builder or to contract out
any type of building or trade work (for which you remain responsible for
coordinating) to either a building company, partnership or individual
contractor, it is strongly recommended that you take out a public liability
insurance policy. This covers you if a
family member or member of the public is injured as a result of the building
work. You could be liable because you own the property. Many people
are under the misapprehension that because a contractor has their own Workcover
or personal injury insurance, the Owner Builder is
automatically covered in case of an accident. There are
many different types of public liability insurance available. For example, some
insurance companies allow you to add a public liability clause to your existing
house insurance policy to cover any person who has consent to be on your
property. You may already have some public liability cover, which may need
to be extended for the new risks during the period of
construction.
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