So when renovating, if a registered builder is not employed, then it is an Owner Builder project and the homeowner has now become an Owner Builder and is responsible for obtaining Insurance to build a new home or protect the renovation of an existing home.

 

Home and contents insurance policies will, usually, cover the homeowner for a limited amount of renovation work. But there are clear limits to what a policy will let you do. There is one simple rule, always and in all circumstances, check with your home and contents insurance provider BEFORE you start work.

 

The cover comprises two parts;

 

Material Damage – Protects the Owner Builder for losses caused by fire, theft, burglary, vandalism, flood, cyclone, storm, wind and water damage of building products.

 

Public Liability – Protects the Owner Builder from third party Injury and property damage. E.g if a tree falls through the fence onto your neighbour’s car due to the roots being exposed because of your construction project.

 

When purchasing Owner Builder Construction and Public Liability Insurance, it is important to fully insure the project, if you and your friends can build it for $50,000 but a builders cost would be $100,000, you have underinsured.

 

Some Home and Contents policies exclude damage caused by storm, flood or water entering the building even Public Liability can be excluded, when renovating/extending.

 

To summarise what we suggest you do.