Browse Forums Building A New House 1 Apr 08, 2006 7:20 pm In the process of getting quotes for building a home in Victoria. Have been told by one builder that our quote also includes builder's insurance of $200 per day......I would have thought the builder had his own insurance.......anyone know how the insurance part of building a new home works?
Jenny Re: Builder's insurance 2Jun 12, 2006 10:18 pm What sort of insurance - liability? or warranty?
Who is getting the building permit - sounds like the 'builder' may be expecting you to get the permit and thus is quoting the cost you will be payingfor insurance. Though I have not seen insurance quoted on a daily rate before Re: Builder's insurance 3Jun 13, 2006 7:55 am jennyg, ask to see the policy document but my advice is that a $200.00 per day insurance is a sham.
Construction Works/PUblic Liability can easliy be up to $10,000 per annum, but that is only $27.00 per day. Warranty Insurance is a lump sum paid before a building permit can be issued. Although mandatory is a total rip-off as highlighted recently on Today Tonight. Check it out here: http://builderscollective.org.au/News/HSV7TodayTonight050606.wmv Re: Builder's insurance 4Sep 20, 2006 8:38 pm If its Builders Warranty Insurance just don't expect it to cover you for anything. Defective work is not covered. At the end of the day you can be left with a house which is defective or unfinished and the builder can simply walk away. You have no consumer protection. BACV will do nothing nor will the Building Commission. Read the posts from "Burned' it is true. Re: Builder's insurance 5Sep 22, 2006 9:21 am jennyg In the process of getting quotes for building a home in Victoria. Have been told by one builder that our quote also includes builder's insurance of $200 per day......I would have thought the builder had his own insurance.......anyone know how the insurance part of building a new home works? Jenny No way. First off, your builder charges a profit margin, and most insurances are a business expense. They should not be applied directly to any one job as cost of sale. Secondly, there is one insurance which is an exception to this, Home Warranty. This will vary depending on your builder's insurance category, and the value of your job. On a $200k house, it shouldn't be much more than $2000. So you might be looking at $11/day for insurance. The other insurances your builder needs to carry are a business expense, and I HATE the bull%$^& argument so many builders use that insurance is sending them broke. It's not, they just don't have a clue how to run a business. If things definitely are as they seem, this guy is the sort of idiot that needs his licence revoked. Hi All, I just wanted to close this topic out with an update. So we ended up agreeing to a number with the insurance company, and after an extensive amount of hand… 8 23401 Hi there, long-time lurker but first time posting. I've bought a house 2 and a bit years ago and last year we had some major water damage on a converted pergola area… 0 7931 I apologise for any confusion, but your understanding is correct. We approached our situation differently based on advice from… 11 53211 |