Browse Forums Building A New House 1 Jul 13, 2014 11:38 pm Hi All, Hope someone from H1 can shed some light for me. I am in the process of building (preparing to start very soon) and have a number of items that I will be supplying myself. The more expensive items that are easily taken such as dishwasher, cooktop, ovens etc will be installed on the day of handover or shortly thereafter so my contents insurance should cover it. I am concerned about the air conditioning system and double glazed windows that I am supplying as these make up a substantial sum of money and I would like to have insurance against, theft, damage or vandalism. I know these items are not covered by the builders insurance and was wondering what people do to cover these risks. Thanks in advance for any assistance rendered. Ciao Mark Re: Insurance for owner supplied items not covered by builde 2Jul 14, 2014 4:36 am Also keen to see if anyone can answer this...we are in the same situation Re: Insurance for owner supplied items not covered by builde 3Jul 14, 2014 9:43 am AussieMark Hi All, Hope someone from H1 can shed some light for me. I am in the process of building (preparing to start very soon) and have a number of items that I will be supplying myself. The more expensive items that are easily taken such as dishwasher, cooktop, ovens etc will be installed on the day of handover or shortly thereafter so my contents insurance should cover it. I am concerned about the air conditioning system and double glazed windows that I am supplying as these make up a substantial sum of money and I would like to have insurance against, theft, damage or vandalism. I know these items are not covered by the builders insurance and was wondering what people do to cover these risks. Thanks in advance for any assistance rendered. Ciao Mark I would strongly suggest calling your current insurer and confirming what you need covered... and what you assume is covered, as each company has different terms and conditions applying to these matters. Best to ask the question, explain the situation and get an answer then and there. It's a specialist type of cover you require and you'll most likely find your personal lines companies, ie: AAMI wont allow for it in their policy provisions. My usual suggestion is to get on to a broker, if there is in fact a cover available, one worth their weight should be able to point you in the right direction. Thread: viewtopic.php?f=31&t=66299 Slab: 16/6/14 Frame: 4/7/14 Roof: 22/7/14 Lock Up: 20/8/14 Fixing: 26/8/14 PCI: 9/10/14 Handover: 20/10/14 Re: Insurance for owner supplied items not covered by builde 4Jul 14, 2014 9:50 am Also - search on here - I've a feeling I've seen this question or similar before ... Re: Insurance for owner supplied items not covered by builde 5Jul 14, 2014 1:59 pm I had a brief search which did not reveal much. I have contacted an insurance broker as this is a fairly common risk I would have thought. I will update the thread when I know more. Ciao Mark Re: Insurance for owner supplied items not covered by builde 6Jul 14, 2014 3:35 pm deluxes AussieMark Hi All, Hope someone from H1 can shed some light for me. I am in the process of building (preparing to start very soon) and have a number of items that I will be supplying myself. The more expensive items that are easily taken such as dishwasher, cooktop, ovens etc will be installed on the day of handover or shortly thereafter so my contents insurance should cover it. I am concerned about the air conditioning system and double glazed windows that I am supplying as these make up a substantial sum of money and I would like to have insurance against, theft, damage or vandalism. I know these items are not covered by the builders insurance and was wondering what people do to cover these risks. Thanks in advance for any assistance rendered. Ciao Mark I would strongly suggest calling your current insurer and confirming what you need covered... and what you assume is covered, as each company has different terms and conditions applying to these matters. Best to ask the question, explain the situation and get an answer then and there. It's a specialist type of cover you require and you'll most likely find your personal lines companies, ie: AAMI wont allow for it in their policy provisions. My usual suggestion is to get on to a broker, if there is in fact a cover available, one worth their weight should be able to point you in the right direction. We had a similar situation when we did our extensnion. The builder was covering his own work but we needed insurance for the existing part of the house. We went to our broker and he managed to find an insurer willing to underwrite the risk. BLOG: http://www.ourphoenix38.blogspot.com.au H1 THREAD: viewtopic.php?f=31&t=70454 Re: Insurance for owner supplied items not covered by builde 7Jul 14, 2014 3:43 pm AussieMark Hi All, Hope someone from H1 can shed some light for me. I am in the process of building (preparing to start very soon) and have a number of items that I will be supplying myself. The more expensive items that are easily taken such as dishwasher, cooktop, ovens etc will be installed on the day of handover or shortly thereafter so my contents insurance should cover it. I am concerned about the air conditioning system and double glazed windows that I am supplying as these make up a substantial sum of money and I would like to have insurance against, theft, damage or vandalism. I know these items are not covered by the builders insurance and was wondering what people do to cover these risks. Thanks in advance for any assistance rendered. Ciao Mark If you are supplying builder with items to be built into your home (by builder) then builder will be responsible for those items from time of taking delivery from you to day of handover. I assume you are not having separate contractors from the builder to install the items, if I was the builder I would not allow it. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: Insurance for owner supplied items not covered by builde 8Jul 14, 2014 4:28 pm BE the items are supplied and installed by third parties. It is all double glazed windows and reverse cycle ducted aircon. Re: Insurance for owner supplied items not covered by builde 9Jul 14, 2014 4:53 pm AussieMark BE the items are supplied and installed by third parties. It is all double glazed windows and reverse cycle ducted aircon. Yes, a recipe for confusion and cross liability disputes. I think your builder was very foolish to go along with that. I think that the only form of insurance that would cover you until completion is construction works insurance (same as builder's) Talk to MBA in your state, they will have an answer for you but you may have to join to get it. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: Insurance for owner supplied items not covered by builde 10Jul 14, 2014 5:06 pm Lots of people get aircon installed separately. Unfortunately with double storey houses you have to be in there during the build. The builder allows upto two trades to be nominated so it may be a WA thing but I believe it is quite a common approach. I have reached out to a broker who is looking into contract works cover. Thanks for your feedback, discussion is healthy as we learn from it. Keep the suggestions coming. Re: Insurance for owner supplied items not covered by builde 11Jul 14, 2014 7:05 pm AussieMark Lots of people get aircon installed separately. Unfortunately with double storey houses you have to be in there during the build. The builder allows upto two trades to be nominated so it may be a WA thing but I believe it is quite a common approach. I have reached out to a broker who is looking into contract works cover. Thanks for your feedback, discussion is healthy as we learn from it. Keep the suggestions coming. I still don't get it. Nominated trades are still builder's subcontractors and still under builder's control.(except that owner selects them) Nominated trades are not the same as separate contractors engaged by the owner. Owner normally does not get the contractual right to bring his contractors on so it must be in special conditions of contract. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: Insurance for owner supplied items not covered by builde 12Jul 14, 2014 11:08 pm Hi aussiemark, We will be in the same boat as you once we start, as we are potentially supplying a number of our own items too. I haven't yet found any info regarding what insurance we can take out, but will pop back in if I do! Look forward to hearing what your broker suggests and might drop you message to get their details. I have seen this aobis.com.au and wonder if it's along the right path? Re: Insurance for owner supplied items not covered by builde 13Jul 15, 2014 2:18 am Well the broker said that they could not provide cover for just the items that we supply. They could cover the entire build though. The cost would be about $3,500 plus a $1,000 excess for any claims. Contract works insurance is not enough as that would only provide cover for the installation period. Its from install to handover that you need cover. I need to have a conversation with my builder to get a better understanding. Damage caused by the builder through negligence on their part should be covered by the builder. In my case I am only looking to cover the double glazed windows and the reverse cycle aircon. Obviously the windows would be needed for lockup and the more expensive parts of the aircon that are outside would be stalled much later. I am not sure when the ducting etc gets installed by I would imagine it would be after lock up. It would be good to know..... The question is, how likely is the potential for loss greater than $4,500. I see my options as follows: 1) Keep looking and try another broker 2) Take out insurance for the entire build myself and potentially double up 3) Speak to my builder and ask if I can pay a top up to include my items and I will pay the excess should any of my items be damaged. 4) Do nothing and take the risk of damage, theft or vandalism 5) Get the owner supplied items included in the contract and pay the builders margin (non-starter given I the windows and aircon amounts to around $100K Its doing my head in as this cannot be the first time it has been tackled. BTW I believe AOBIS is for owner builder and I am not sure whether you can say you are an owner builder and have a main contractor doing everything up until handover. WIll update as and when I know more. Re: Insurance for owner supplied items not covered by builde 14Jul 17, 2014 8:42 pm my air condition copper pipe stolen before plastering. cost me 900 dollar to fix it. nothing we can do to avoid thief. just try to shorten lockup waiting time. Re: Insurance for owner supplied items not covered by builde 15Jul 18, 2014 1:28 am Option 1,2 & 3 is what I will be chasing. Must be some serious windows and a/c to amount to $100k. I don't agree with BE above that the builder should be responsible for it as the windows were not supplied by them or the a/c is installed by a 3rd party. The builder has kindly allowed you to save some money by supplying some things yourself. If you then turn around and make them liable for the items, I think that's immoral and then in future the builder will say no to future customers' requests. Re: Insurance for owner supplied items not covered by builde 16Jul 18, 2014 5:15 am JB1 I don't agree with BE above that the builder should be responsible for it as the windows were not supplied by them or the a/c is installed by a 3rd party. The builder has kindly allowed you to save some money by supplying some things yourself. If you then turn around and make them liable for the items, I think that's immoral and then in future the builder will say no to future customers' requests. Whether item for building in is supplied by a retailer or by owner makes no difference, on delivery builder is responsible for it and if it's broken or stolen it's builder's risk. You may call it kindness to allow owner to supply items (to save money) but I call it stupidity because builder remains responsible for replacement of item that he has not had the opportunity to mark up. For example: option 1 $ 5000 aircon in the job $ 5000+ builder's margin 20%=$1000 total $ 6000 , then it gets stolen or damaged (builder's insurance pays) option 2 owner delivers to builder $ 5000 unit that gets stolen or damaged= builder has to replace at his loss with no margin scenario 1 builder's items are insured scenario 2 builder has foresight to insure owner supplied items scenario 3 owner supplied items are not insured = builder's loss If I was your builder and you wanted to supply items (to save money) I would tell you to go and find a stupid builder or would quietly add a fat margin to my price to allow for the risk. If you wanted to get your own contractor to come to my site and install air conditioning I would do the same. Just my opinion Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: Insurance for owner supplied items not covered by builde 17Jul 18, 2014 10:02 am Ok lets get some answers out. Firstly they are not some special windows or aircon, it is a larger house and the windows are 30% more costly than the single glazed units that the builder supplies. The windows are around 65K and the aircon is 2x19kw Actron Ultimas which comes in at around 38K. The risk of theft of aircon ducting is low because of the bulkiness and the lower value resale wise. Most of the expensive pieces are commissioned post handover. The builder says that most of his clients supply and install this way and there are rarely problems. The windows are also low risk of theft as they are extremely heavy. Because of this my concern would be if after installation one were to fall out and cause damage. The windows are warrantied for 10 years so I will enquire if that covers public liability in the event that they come loose. I understand that builders have a margin but with all due respect BE using examples of 5K destroys the point as the margin alone is 20K and that is the issue. I do not think there is 20K worth of risk. I have received a quote to cover the entire build cost for contract works and public liability for the duration of the build and based on the premium the value associated with the uptick in build cost because of my units is around 300. I would gladly pay more than that to the builder to have these included in their cover. Both would benefit. Re: Insurance for owner supplied items not covered by builde 18Jul 18, 2014 12:15 pm I'm not sure about other builders, but for mine we work this way.. For items supplied by builder, those are of no issue as margin already in and they'll cover them. For items supplied by me, my builder suggested that there are items which won't affect build.. ie: additional light which I'll add afterward. They will prepare the connections etc and they will cover those but not the actual item being added. I have supplied the list and gone thru them together. For other items that I am to supply, they will deal with my nominated supply directly and will ask if any discount as well, if after the discount plus their margin, the cost is still lower then I buy myself, I'll go thru builder to get. Otherwise I will buy myself. But in all cases, builder will be the one to arrange delivery and be responsible with insurance etc. I think this gives us a win win situation and peace of mind for both parties. These arrangements include aircon, heating and hot water as well and any "fixed" appliances like cooktop etc. I think there are many ways out with these situations, it's just how creative and flexible the builder is. Re: Insurance for owner supplied items not covered by builde 19Jul 18, 2014 2:03 pm @snowing sounds like an approach I would go for but unfortunately my builder will only cover items supplied and installed by themselves. Re: Insurance for owner supplied items not covered by builde 20Jul 18, 2014 3:40 pm AussieMark @snowing sounds like an approach I would go for but unfortunately my builder will only cover items supplied and installed by themselves. Does your contract allow you to supply windows? Does your contract allow your contractor to come in site and do rough in for air conditioning? Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog The best advice is for you to get a competent building consultant to guide you through your build 7 4677 The significant date is when receive final payment invoice Check that section of contract Bit of fluff by builders prior to that 1 15951 |