What type of insurance is required for an owner-builder? (VIC)

Builders Warranty Insurance

Builders Warranty Insurance is required by all domestic builders who enter into domestic building contracts in which the contract price for the building work is more than $12,000. Insurance provides important protection for building consumers, in the event that a builder dies, becomes insolvent or disappears, and can't finish the building project or fix defects.

Professional Indemnity InsuranceProfessional Indemnity Insurance is required by the following building practitioner categories and classes:

• Building surveyor
• Building inspector
• Quantity surveyor Engineer - Civil, Mechanical, Electrical & Fire Safety
• Draftperson - Building design (architectural, interior and services)
• Architect (Please note: architects are registered with Architects Registration Board Victoria)

Professional indemnity insurance indemnifies the practitioner against legal liability resulting from any claim or claims made during the period of insurance.

Public Liability Insurance

Public Liability Insurance is required by the following building practitioner categories and classes:

Public Liability Insurance indemnifies the building practitioner against legal liability resulting from any claim or claims made during the period of insurance

• Builder - Demolisher (low rise buildings, medium rise buildings and unlimited)
• Erector or supervisor (temporary structures)

Structural Defects/Builders Indemnity Insurance

Builders Indemnity Insurance for Structural Defects is required by all commercial builders (unlimited).

Whoes Responsibility - Home Warranty Insurance

Home warranty insurance must be obtained by the home building contractor and the certificate of insurance given to the homeowner prior to taking any money on the contract and prior to commencing the work, or supplying the kit home.

Home warranty insurance cover:

• is required for any residential building work or supply of a kit home, where the work requires a licence and is valued at over $12,000
• for policies issued from 1 March 2007 must provide minimum cover of $300,000
• for policies issued between 1 May 1997 and 28 February 2007 must provide minimum cover of $200,000
• is sold by approved private insurance companies.

(Source: Fair Trading NSW)