Owner Builder Insurance

Owner Builder Insurances are similar to "Contractors All Risk", when doing additions to your home or building a new home for yourself, there are three types of insurance that are essential to give you piece of mind.

  1. Construction Insurance
  2. Public Liability Insurance
  3. Home Warranty Insurance (if selling within 6 years from completion)

1. Construction Insurance

Construction sites are inherently dangerous places. This is why construction insurance is an important policy to have if you own, run or manage a construction site. Also known as Constructors All Risk Insurance, construction insurance provides safeguards for you as an employer against your construction workers being injured on site. Construction insurance does not exempt you from maintain a safe workplace. Usually, construction insurance policies only pay out if a strict set of health and safety guidelines are followed.

Construction insurance also covers materials and machinery on the construction site in the event of an accident, fire or theft. Due to the high cost of building materials in the current economic climate, the theft of building materials is getting more commonplace and makes construction insurance an option for anyone wanting to protect against the chance of this occurring.

2. Public Liability Insurance

Public liability insurance protects a business and its owners against the financial risk of being found liable for third party claims such as death, injury, loss/damage to property or ‘pure economic' loss resulting from business negligence.

Public liability insurance is essential for every Owner Builder.

3. Home Owners Warranty Insurance

The below only applies should you sell your home within a 6year period. You would then take the place of the builder.

Home warranty insurance is a vital component of a comprehensive consumer protection regime for homeowners undertaking building work in NSW.

Home warranty insurance provides a safety net for homeowners for residential building projects where the contract price exceeds $12,000 and a builder is unable or unwilling to honour their fundamental responsibilities under the building contract, that is, to complete the construction of a dwelling or return and rectify defective work.

If a builder is unable to honour their commitments under a contract because of insolvency, death or disappearance, the home warranty insurance scheme is there to protect homeowners.

The scheme is also there to protect homeowners where a builder refuses to meet their contractual obligations and has been found at fault by the Consumer, Trader and Tenancy Tribunal or a court and fails to comply with a compensation (money) order in favour of the homeowner (which results in the automatic suspension of the builder's licence).

The homeowner is not required to enforce the Tribunal order or initiate insolvency proceedings... they are able to claim on their home warranty policy.


If you require further information for your Owner Builder Insurance needs, please call our office on (02) 8713 1800