7.0 INSURANCE
Insurance is a necessary evil on all projects, and one of those areas we (owner builders) never want to have to deal with.
But things do go wrong, accidents happen and not everybody is as honest as you would like.
You, your site, the people working on or visiting the owner builder project site, the materials and the construction itself should be insured.
All the money you can save by being an organised owner builder will be lost quicker than a heartbeat if inappropriate or inadequate insurance policies are held.
Following is a list of the insurances you need to consider before embarking on your project.
In addition to holding your own insurances, you need to ensure each and every trade contractor you use is correctly covered and has in place all necessary insurances to cover them, their workers and their work.
At the end of this section we have included an insurance register which can be used to record and update all insurance details for the project.
Abacus Training students must be aware that:
- All policies and all insurance companies are different in respect to what is covered and to what extent.
- It remains your responsibility to ensure you read and fully understand the Product Disclosure Statement (PDS) for any policy you are considering, to satisfy yourself that you are getting what you expect.
The information provided below is an extract that outlines typical or ssuggested insurance requirements for building projects including owner builders.
Familiarise yourself with the requirements, particularly in respect to Home Warranty Insurance.
If you have any questions, you should contact one of the approved providers of Home Warranty Insurance directly.
Owner builders are not eligible for insurance through the Queensland Home Warranty Scheme.
This insurance protects home owners who have a contract with an appropriately licenced contractor. This insurance helps home owners when:
- the contractor fails to finish the building work for reasons which are not the home owner's fault
- the contractor fails to rectify defective building work
- the building is damaged when the ground subsides or settles.
7.1 BUILDERS ALL RISK INSURANCE
Sometimes known as Construction Insurance.
This policy covers the works on the site and the material securely stored on site from theft, fire, storm, willful damage etc.
It can also be extended to cover items in transit and other defined events as specified in the policy.
As with all insurance, be certain you understand the specific inclusion and more importantly exclusions.
Also what if any excess is included and how it affects the premium paid.
7.2 PUBLIC LIABILITY INSURANCE
While it remains your responsibility to make the site as safe as is possible and to put in place certain risk management strategies, accident still do happen.
It may be a visitor to the site, a friend, a relative or even a member of the general public who falls, trips or in some way injures themselves on the construction site.
Should they seek to claim damages, you will need to be insured to cover any associated costs.
Quite often, a lower premium can be achieved through insuring for Construction (All Risk) and Public Liability with the one insurer.
7.3 WORKERS COMPENSATION INSURANCE
WorkCover, or workers compensation insurance is to provide for loss of income due to accident or injuries received during the conduct of works on or associated with the a workplace.
It remains a legal obligation for anyone who employ staff on a full or part time basis to provide adequate workcover insurance.
As the Owner-Builder and therefore the Principal Contractor, it is your responsibility to:
- Provide Workers Compensation for people employed on your site, or
- Ensure all trades people and contractor carry their own policies and that these policies are current and appropriate.
https://www.worksafe.qld.gov.au/
7.4 WARRANTIES
Many of the PC Items you purchase will come with a manufacturer’s warranty.
There are several ways to retain copies of these for claims that may result from failures etc.
We recommend keeping them in a separate file either, scanned and retained electronically or in the original hard copy format.
Whichever way you decide upon, make certain you can readily access tehm as required and that all necessary information or supporting documentation is retained including:
- Receipt of purchase
- Store Invoice
- Copies of any completed warranty forms
- Details and proof of extended warranty purchased
But things do go wrong, accidents happen and not everybody is as honest as you would like.
You, your site, the people working on or visiting the site, the materials and the construction itself should be insured.
All the money you can save by being an organised owner builder will be lost quicker than a heartbeat if inappropriate or inadequate insurance policies are held.
Following is a list of the insurances you need to consider before embarking on your project.
In addition to holding your own insurances, you need to ensure each and every trade contractor you use is correctly covered and has in place all necessary insurances to cover them, their workers and their work.
At the end of this section we have included an insurance register which can be used to record and update all insurance details for the project.
Owner Building Solutions Australia advises that:
All policies and all insurance companies are different in respect ot what is covered and to what extent.
It remains your responsibility to ensure you read and fully understand the Product Disclosure Statement (PDS) for any policy you are considering, to satisfy yourself that you are getting what you expect.
7.5 HOUSEHOLDERS INSURANCE
General Household Insurance may cover some of the works conducted on site, but be careful, again check PDS and ask questions.
Contact Workcover and discuss a Household Workers’ insurance policy.
This will cover your cleaner, your nanny or your gardener if they injure themselves in the course of providing paid services to you at your residence.
The area of workers engaged on your project is a little ‘grey’, and we would suggest you contact WorkCover and take out the policy that is best suited to your specific requirements.
WorkCover can be contacted via https://www.worksafe.qld.gov.au/
7.6 REGISTER OF INSURANCES
It is advisable to keep a register of all insurances you hold current in respect the owner-builder works you are undertaking.
The following table is an extract from the Design Brief Checklist which should as a minimum; include the policy details as indicated.
Keep it in the master file for the project to allow easy access to the information.
Owner Builder Insurance Register
Remember, it is advisable to include the insurance details of each contractor on the relevant signed contract.
This information should include:
This information should include:
- Insurer details
- Policy Number
- Type of Cover
- Expiry date
- Name of the Insured.