Insurance and the building industry
Insurance in the building industry is complex, difficult to manage and even difficult qualify for. Be careful – lots of builders are licensed – but not insured. Most people (both clients and builders) put this stuff in the too hard basket and just ignore it. They fool themselves that they are generally covered, and hope for the best.
I have never had a claim against any of my insurance policies – but I have them because I am a legal, licensed and responsible Builder.
home Building Compensation Fund (HBCF)
This protects the client against faulty work done by the contractor.
Be careful – lots of builders are licensed – but don’t qualify for this mandatory insurance.
Required for any work over $20,000-
I am pre-approved for jobs up to $900,000-
I can get higher cover with a Job Specific Application
Contract works Insurance
All of my contracted works are covered during the building period
your home insurance has gaps when building is underway
Existing Structures Insurance
When the total cost of a building work exceeds $50,000- your home insurance becomes void. You can be left in a terrible position if something happens to your house –
The contractor is only liable for the part of your house covered in the contract – the rest of your house is a gap (your house is not covered and the builder is not liable). This is not up to the discretion of the builder – it is determined by the insurance company.
The solution to this is that a builder can purchase an Existing Structures Insurance Policy to cover your specific house for a nominated period of time for when building works are scheduled to be carried out.
Public and Products Liability
This is like your Third-Party Property Damage Insurance for your car – to protect against Personal Injury and Property Damage caused by me.
I have a $15 million-dollar policy.