Browse Forums Owner Builder Forum 1 Sep 12, 2011 2:55 pm Hey guys, We are embarking on a hopefully very short journey to build a transportable home to live in. Basically the crux of it is, have put the plans into the Shire, got owner builders licence, have most of the materials sorted, booked the annual leave to do it and hopefully away we go!!! Yeah right What I need to know about is do we need some sort of building insurance and is it required/compulsury. Both of us doing the build are personally covered in case of an accident etc. and the total material cost is $20,000ish.... so don't really know if I need it (ie. if something was broken/stolen it would be cheaper to just replace). Letting it out into the world of wisdom out there... also we are in WA if that helps! Re: Owner Builder Insurance 2Sep 12, 2011 8:44 pm Hi Sal. Good luck with the build. Here are a couple of types of insurance that you should consider. a) Construction Insurance covers both the existing property and the new construction against loss arising from external forces or actions during construction. These include fire, storm & tempest, water damage, theft and vandalism. eg what if your partially constructed house burns down either through arson or lightening strike or an ill-directed welder spark? b) Public Liability Insurance covers third parties against personal or property damage for which the owner or builder is legally liable, including damage caused to third parties coming on to the site and damage caused from the site to adjoining properties and individuals. c) Pre-existing property covers the existing dwelling and the construction site provided the loss or damage occurs and is discovered during the construction period. d) Contents covers the contents in the existing dwelling and the construction site provided the loss or damage occurs and is discovered during the construction period. e) WorkCover (not sure if that is what is is called over in WA) but basically covers you if one of your 'employees' gets injured on site. 'Employees' has VERY broad definition including some sub-contractors and potentially any unpaid labour such as family/children etc. I would consider b) & e) mandatory. You only need some pilfering so-and-so to break his leg trying to flog your hot water service to find yourself on the end of a damages suit. On a more realistic perspective, it also covers any damage to adjoining properties as a result of your construction. Also, I would not rely on the sub-contractors' insurance or their workcover policy to cover any damages or injuries that might occur on your site. There are many, many horror stories out there about the un- & under-insured as well as the tactics employed by the insurance companies to not honour claims. Much better to be dealing with 'your' insurance company than a 3rd parties. Regards RiH Re: Owner Builder Insurance 3Sep 13, 2011 10:52 am Grate advice RiH! *takes notes* (we are doing our own earthworks and supplying a lot of stuff, tapware, bathtub, etc that isnt covered under our builder's insurance) 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 VK, I am now retired however I have stood beside over 300 owner builders in the past 18 years that have successfully built their own homes. First of all a building… 10 22666 |