F. D. Beck and Sons Pty Ltd
Suite 18/296 Bay Road,
Cheltenham, VIC, Australia 3192
Ph: 1300 155 338
Fax: (+613) 9585 6177
E:
Owner Builder Construction Insurance Calculator
If you need a quote for your Owner Builder Construction Insurance, including Owner Builder Liability, don't forget to use our
free online quoting calculator.
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1300 155 338
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Owner Builder Construction Insurance
How does an owner builder calculate enough insurance cover?
The realistic cost of replacing home is not your construction cost! As an owner builder you need to take into consideration your time, labour and effort.
Insurance for an owner builder should always be calculated based on what a builder would charge you for the same job. This is because you may not be in a position to rebuild as an owner builder.
For example many owner builders use long service leave entitlements when building their home. However if a major insurance loss occurred well into the building process many owner builders would not have the time available to start over again. Even if you did have the time available you may not want to go through it all again as an owner builder.
How can under insurance effect an owner builder?
A lower premium based on your construction cost could also cost you thousands of dollars in the event of a major insurance claim. In the event of a claim the insurance company would establish if the policy taken out was enough to cover the project. If not, the insurance company will pay the same percentage of the claim as the project was underinsured. This means if the claim was for $200,000 and the project was 33% underinsured the payout would be $132,000, leaving the owner builder $68,000 out of pocket!
Is your existing house covered during a renovation or extension?
As a general rule your household insurer will not cover your existing house structure whilst you undertake a major renovation or extension. Therefore we always recommend that you contact your household insurer and let them know the estimated cost of the work that you will be carrying out. If your insurer agrees to provide cover then make sure you obtain confirmation in writing.
If the insurer doesn't agree then FD Beck can arrange cover as part of your owner builder insurance policy. However please note that we will not be able to provide cover for your contents under your owner builder insurance policy.
When should an owner builder start cover?
An Owner Builder should always take out cover before any work begins. This is because once the project has commenced many insurers are reluctant to provide insurance. In most cases starting your cover earlier will not increase the premium because insurers generally rate the premium based on the project value. Therefore if your home takes 6 or 9 months to build the premium will be the same.
The other issue that an owner builder needs to consider is that even if you have not started any construction activity, you may be held liability for people injured on your vacant land. An owner builder insurance policy includes cover for public liability, therefore if you take out cover before the project commences then you will also have liability cover for the vacant land.
To find out more:
For more information or to receive a quote, please email Simon Pascoe — E: — or call 1300 155 338
