New Home/ Renovations/Extensions

When embarking on a major project like a new home or a major renovation, getting your planning and preparation right will lead to a much smoother project. However, no matter how well you plan, things can and do go wrong and it is essential that you have the appropriate insurance in place for your project. Insurance is a necessity, not a luxury.

Construction and Public Liability Insurance comes under many names: Construction works, Contractors all risk, Contract Works, Construction Insurance, All risks Insurance, Site Insurance, but is the same policy that covers new homes and renovations/extensions.

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.
  • Public Liability – Protects the Owner Builder from third party Injury and Property damage. Eg. Neighbours car damage.

A major building project can be stressful; unexpected events such as a flood, fire or theft of materials could seriously impact on both the timescale for the build and costs and could have a disastrous effect on your ability to finish your new home. With a major project, it is essential that your investment in both time and money is protected against any major problems. It is therefore essential that you have adequate Construction and Public Liability insurance cover in place and indeed, if you are borrowing to finance your project, you will be required as a condition of your mortgage to have the cover in place.

For Renovations/Extensions, Owner Builders need to Insure not only the building work, but also the existing home that is being renovated/extended.
Why? Home and Contents Insurers often do not cover building works over a certain value
(eg. $20 000), some exclude storm, water damage, even Public liability and all exclude contents cover. CHECK!

Owner Builders, when deciding to purchase construction Insurance, need to be comfortable that the cover fully protects their project!

Questions need to be asked, Does the policy cover? e.g.

  • Subcontractors negligence.
  • Tools? What amount?
  • Policy extendable after 12 months?
  • Flood, not just Riverine – Do NOT purchase Owner Builder Insurance unless it covers FLOOD! Tasmania and in particular Hobart have suffered from a $20 Million claim (So Far) event whereby FLOOD has not always been included in the policy!
  • Contents?
  • What are the excesses for each?
Make sure Construction and Public Liability Insurance is bought before work starts as the insurer will treat the project as commenced works and charges a lot more. Plus you have no cover prior to the start of the policy in the event of theft or a public liability claim.
See our Quick Check Chart to know what you are covered for Click here

Policy Covers:

Fire Storm, Wind & Water and FLOOD Damage
Public Liability Third Party Property Damage
Theft Liability due to Negligence

Consider the Following Options:

Protect existing home and contents Already started – commenced works
Materials stored off site for safe keeping Extendable policy period beyond 12 months
Licenced builder to lock up options Qld is covered

Automatically Covered at NO additional premium:

Sub-contractor liability protection $5,000 tools cover
Removal of Debris (10% of sum insured) Worker to worker protection
Professional Fees (10% of sum insured) Expediting Expenses (10% of sum insured)
Increased cost of works (10% of sum insured) Goods in Transit $50,000
Prime Cost items included Mitigation Expenses (10% of sum insured)
Restoration of Records (5% of sum insured) Temporary Protection (5% of sum insured)
Goods in storage cover $50,000 Automatic allowance for excavations for up to 5 meters
Property in your Care, Custody and Control

Why choose AOBIS?

Low excess available Cover QLD
Vibration, removal or weakening of supports and/or underpinning covered Injury to contractor/sub-contractor/labour hire covered
Demystifying insurance and protecting you, the owner builder Fast and client focussed claims management
We cover new homes, renovations and extensions, alterations and additions, commenced works, builder to lock up, kit homes and mud brick homes Heritage in Owner Builder since 1996 exclusively building and renovation


Frequently Asked Questions

Welcome to our FAQs section, we have answered your questions here.
If you can’t find the answer you’re looking for? Get in touch with us.

What if I need more time? All policies are 12 months minimum. If however, you require additional time; we can extend on a 3 month basis up to an additional 12 months.
Sub contractors are required to carry a minimum of $5mil Public Liability on building sites. Before any sub contractor enters a work site they must provide the Owner Builder with a current (check the expiry date) contractors insurance certificate of currency.
Can I still get cover? Yes, we will cover you once the builder has completed the handover.
To make a claim please contact us 1300 850 131 or contact your insurance broker. A claims form can be found in the claims section of this website.
We can provide cover as a commenced works policy.
In most instances standard home and contents policies do not cover existing property during renovations works. AOBIS Policy does provide optional Existing Structures and Contents cover.
Standard national excess is $1000.
You are not covered for personal injury under the construction policy. See voluntary workers insurance
Yes, we can cover adjoining property. In Victoria, if you are building on or near the boundary of another property the building surveyor may require that you take our insurance that will cover the adjoining property and for a period of 12 months after completion of the work.
Check your Home and Contents Product Disclosure Statement, and I am positive it will have an exclusion where a permit was required BUT not obtained- You do NOT have Insurance!
You will need to purchase a separate insurance policy for voluntary workers. Please refer to your insurance intermediary.
AOBIS Policy value may be increased midterm – conditions do apply.
No. Upon securing an occupancy certificate or final inspection certificate the construction insurance ceases.
Yes provided they are stored on site and included in the sum insured.
The total cost of construction including materials and labour at replacement value – remember include building labour at builder rates.
Yes tools are included up to $5,000.
Family members are not covered for Personal injury whilst they live on the construction site.
If you are underinsured then the full value of your claim may not be paid under the average clause.
Are you storing appliances onsite and offsite? Make sure your policy is covering you. Are Subbies covered? Most policies do NOT cover subcontractors that you employ onsite!

Usually it is a condition of the insurance that all subcontractors must:

Have a minimum of $5,000,000 public and products liability insurance and relevant employers liability insurance;
Conduct a thorough safety inspection of the Construction Site prior to beginning any work or delegating any work;
Be required to comply with all relevant safety requirements applicable to the work they will be conducting on the Construction Site; and
Be accredited or licensed where applicable for the work they or persons under their instruction and/or employment are performing

The short answer is YES. Your home has now become a building site, the insurer under common law needs to be informed, that the risk has changed, and the insurer has a minimum monetary level of the renovation whereby they want to be informed. It can be as low as $2000, yes $2000, $20 000 etc.

So once the Owner Builder project is above the minimum then Owner Builder Construction and Public Liability Insurance policy. Is required.


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