Building a new home , insurance questions

suku18 · Feb 07, 2024 7:47 pm

Hello All,

We are looking to start our build soon, and in consultations with a couple of builders to finalise quotes.
All quotes come up with mention of insurance but what are rhe main insurances we need to cover us against any unfortunate circumstances like collapse of a builder.
Also what other insurances we will need the builder to include in the quotes.

Thanks

Ashington Homes · Feb 08, 2024 5:10 am

suku18

Hello All,

We are looking to start our build soon, and in consultations with a couple of builders to finalise quotes.
All quotes come up with mention of insurance but what are rhe main insurances we need to cover us against any unfortunate circumstances like collapse of a builder.
Also what other insurances we will need the builder to include in the quotes.

Thanks

Hi Suku18

In NSW the statutory required insurances are:

1. HBCF ( Home Building Compensation Fund) - This is if the builder dies or goes broke. But this only covers 20% of your contract value or $340,000 whichever is greater, and its not like they come in and finish building your house. So it's not that great. The do help with structural and waterproofing issues during the warranty period.

2. Public Liability

3. Workers Compensation

I blogged about this last year. The most important insurance which a lot of builders don't take out in the house building world is Contractor's all risk insurance. This covers both parties for a variety of things from storms, fire theft etc.

So I would definitely insist on this being taken out to cover my build.

Cheers

Simeon