Owner Builder Insurance

Personal Accident Insurance provides income protection for workplace related disability caused by accidental injury or sickness. A typical policy can provide replacement income, homemaker benefits, loss of life benefits and rehabilitation/return to work assistance.

If you are physically working on your project site, and/or having friends or family help with any of the work, you'll also need Voluntary Workers cover. A typical policy can provide financial compensation and cover for expenses in the event of accidental death or disablement of someone providing volunteer work.

Workers Compensation Insurance can also be an important consideration. It is administered differently between states however a typical policy can provide financial assistance to anyone you engage for your construction work in the event they sustain an injury or become ill from their work.

Owner Builder Home Warranty Insurance benefits the subsequent purchaser of your property, not you as the Owner Builder. The policy provides cover in the event that you as the Owner Builder die, disappear or become insolvent, and the building works are incomplete or defective.

An owner builder is an individual who chooses to construct a new dwelling, or renovate an existing one, on their own property without engaging a licensed builder. In essence, the owner builder takes on the role of a registered builder, assuming responsibility for overseeing subcontractors, and sometimes doing the work themselves.

In order to become an approved owner builder, you must apply for the required owner builder permit from your respective state.

Existing structures are structures that existed at the project site prior to works commencing. This includes garages, sheds & granny flats.

The project value is the total cost to complete your construction project. This includes the cost of materials, fees, and labour.

Owner builders are responsible for any subcontractors, workers or visitors to the construction site and hence can be liable in the event someone gets injured. Insurance requirements vary for different states and every owner builder has unique risks with different insurance requirements.

In all Australian states and territories, owner builder insurance is legally required once a project exceeds a specified value threshold, with requirements and thresholds varying from state to state. For more details on your state’s requirements, visit your designated government regulatory body website:

• Western Australia Department of Energy, Mines Industry Regulation and Safety
• NSW Government Fair Trading
• Victorian Building Authority
• Queensland Building and Construction Commission
• Government of South Australia
• Northern Territory Government
• Service Tasmania
• ACT Government Planning

You won’t be able to obtain permits, council approval, or an owner builder certificate in your state. Without owner builder insurance, you may also be personally liable for injuries, property damage, or legal claims arising from construction works. In the event of a serious incident, the financial exposure can be significant.

In most states and territories, owner builder insurance must be in place before any construction work begins, including before submitting plans for assessment or obtaining council approval. It’s important to check the specific requirements for your state or territory, as each has its own rules for owner builder approval and insurance.

If you engage a licensed builder under a standard building contract, the builder is responsible for holding the required insurance. However, if you are acting as an owner builder and directly managing or engaging trades, owner builder insurance is required.

Owner builder insurance generally provides cover for public liability and property damage arising from construction works during the insured period, including injury to third parties and damage to third-party property.

Owner builder insurance covers your legal liability arising from construction activities, including incidents involving subcontractors. However, subcontractors should still hold their own public liability insurance, and in some cases workers’ compensation, where required by law. Owner builder insurance does not replace a subcontractor’s own insurance obligations.

No. Insurance companies do not offer stand alone Liability cover for owner builders.

No. Voluntary Workers can only be taken in conjunction with an Owner Builder policy.

In addition to Owner Builder Liability Insurance, you may require personal Accident insurance, voluntary workers insurance, workers compensation insurance, or owner builder home warranty insurance. For more details on the different insurance products available to owner-builders, read our article on Deciphering Owner Builder Insurance Requirements here.

Home insurance companies often refuse coverage during renovations because standard policies don’t cover properties while construction work is underway. This applies whether you’re acting as an owner builder or hiring a licensed builder. Renovations increase the risk of damage or accidents, which is why insurers usually exclude coverage during this period.

Once you decided which insurer’s quote you wish to proceed with, simply complete that insurer’s proposal, sign & return to - ownerbuilder@coverforce.com.au. We’ll send you a confirmation once the policy has been established.

Owner builder insurance is usually obtained through a specialist broker. You can apply for owner builder insurance with Coverforce, from any state. Simply complete a quote request online to receive your quote in under 30 minutes. Quotes may take longer for complex projects, such as when the project has already commenced, or raising or lowering forms part of the project.

Owner builder insurance premiums are typically calculated based on factors such as the project’s cost, the scope of work, and, in some cases, the location of the property. Currently, only a limited number of insurers offer owner builder insurance in Australia, including MECON, 360, and CGU.

However, this type of insurance is usually arranged through a specialist insurance broker, such as Coverforce, rather than directly with the insurer. Using a broker ensures your project is presented correctly to the insurer, the right questions are asked upfront, and the cover arranged is suitable for your specific build, which can help avoid delays, declined applications, or gaps in cover.

Owner-builder insurance is typically issued for a standard term of 12 months across Australia. Cover applies during the construction period and ceases on completion of the works or the policy expiry date, whichever occurs first.

There is no refund for early completion. Cover ceases on completion of the construction works or the policy expiry date, whichever occurs first.

A Coverforce quote for owner builder insurance is valid for 30 days.

Owner builder insurance begins when the policy starts and remains active even if construction is delayed. The standard policy term is 12 months, and cover cannot be paused or backdated during that period.

If your project takes longer than expected, some insurers may allow you to apply for an extension before the policy expires. Extensions are assessed on a case-by-case basis and are granted at the insurer’s discretion. Our team will get in touch with you before the expiry of your insurance period to see if you require an extension.

Most owner builder insurance policies have an initial term of 12 months. In some cases, a 24-month term may be available, but this usually requires a manual assessment by the potential insurer.

If you arrange your owner builder insurance through Coverforce, our team will contact you before the end of your policy term to discuss whether you wish to request an extension. Extensions are granted at the insurer’s discretion, and the maximum coverage period for owner builder insurance is generally 3 years.

Owner builder insurance does not cover defective or faulty workmanship, whether completed before or during the policy period, nor the cost of rectifying poor-quality or incomplete work.

Obtaining owner builder insurance mid-project can be challenging. Insurers may be hesitant to provide cover if a licensed builder has been terminated, due to the potential risk of defective work completed prior to termination. It is still possible to secure insurance, but premiums are generally higher in these circumstances, as they are calculated based on the level of risk. The final premium will depend on the remaining works to be completed, and the cost associated with finishing the project.

No. There is no insurance product in the market for owner builders who are doing projects that are on an island that does not have road access from the mainland.

No. There is no insurance product in the market for owner builders who are doing projects that are pool projects that are greater than 25% of the total construction cost. This includes pool surroundings, and pool houses.