Q: I got told by someone else I don't need it

We are the only Owner-Builder insurance specialists in Australia quoting on Workers Comp for owner-builders. We're also the only ones who have to... because we're exclusively recommended by almost every Owner-Builder training provider in Australia now.

So we have an obligation if we expect to continue to be so widely recommended, to advise our clients on ALL of the risks, of which Workers Compensation absolutely is one.

Q: Why do I need it then?

The common mistake is assuming that you can just check that all your contractors have their own Workers Comp cover.

But this does not work! Why?

The only contractors who can insure themselves for workers comp are 'Pty Ltd' companies.

- 'Sole Traders' can insure their workers, but they cannot cover themselves.

(for confirmation directly from iCare on this point refer to https://www.icare.nsw.gov.au/employers/your-insurance-obligations/who-needs-workers-insurance under "Sole traders and proprietorships" heading).

Because a sole trader cannot cover themselves for Workers Comp, they can and do instead claim against the Builder they are working for.

Q: Why does my policy say I have 1 worker and $7500 wages?

A:

Sole Traders can't cover themselves for Workers Compensation so they can claim against the Builder they're working for, but their ability to lodge a claim doesn't guarantee the claim will be successful.

Either way, the policy covers your exposure, whether it's the legal costs defending a claim, or the pay-out awarded when the claims are successful.

A successful claim will occur when, at the time of assessing the claim, the contractor is defined as a 'deemed worker'.

Your only exposure is to deemed workers, but you cannot know how many you'll have (or what you'll pay them) until after a claim has occurred and you find out if they are to be granted the status of 'deemed worker' or not.

The policy placed on your behalf is at the minimum levels allowed (ie over $7500 wage estimate), but this doesn't limit your cover in any way. It is only an estimate, and you'll have full cover against any claims from contractors.

Q: Why does my policy end on the 30th/31st. Shouldn't it be a full 12 months?

A:

The Government in NSW decided recently to force all Workers Compensation policies to expire at just one time each month (the end of the month). It's their ruling, and we don't get a say in the matter. All new policies have to have an expiry date that is the end of the month prior.

If you renew the policy for a further year it will be a full 12 months though.

Q: Why have I been sent two separate invoices for the Workers Comp?

A:

In NSW iCare have taken over the Workers Comp scheme, but they are only currently handling policy placement and renewal.

Claims are still being handled by the authorised insurers like GIO.

We don't know if this is their final solution, or if it will change again within the next year.

For the moment, you'll have received an invoice from iCare, and also one from us, acting as your broker for claims handling and advice, and in conjunction with GIO.

Below is a list of these topics and you can use this Table of Contents to jump to the part that interests you the most.

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There's no strict one-size-fits-all insurance requirement for owner builders, just like your house isn't the same as everyone else'.

Rather than looking at what's the cheapest overall, we think you should be looking at what's the best package to cover yourself properly.

Public Liability and Contract Works

Without a doubt, the two major types of insurance owner builders need are public liability and contract works.

Public Liability covers you the owner builder if someone sues you for personal injury or property damage. For example, a visitor to the site is hurt on an unsafe worksite, and you're blamed for the injury. Or perhaps a fire spreads from your worksite and damages your neighbour's house.

It's important to note that most public liability claims that may occur will be directed at the builder in charge of the site (ie. you), so any insurance that may be held by contractors will not help in those cases.

Whether or not you actually are at fault, Public Liability is important to defend you, pay legal costs, and pay compensation to the injured party.

Contract Works covers you the owner builder if your project is damaged - including by storm, earthquake, bushfire, vandalism or theft of building materials. Your tradesmen do not cover this - their insurance is generally only public liability protecting them if they are sued for injury or damage.

Workers Compensation

A much trickier concept is workers' compensation. Whether or not you think your tradesmen should have their own insurance, if you're using sole trader contractors (i.e. not Pty Ltd companies), they can NOT cover themselves for workers compensation. This is why there's a very real risk that one of those contractors could be deemed to be your worker at law. Not your employee, but your worker.

Determining who is a worker is complicated, and it depends in part on the exact relationship between you and the contractor at the time of the injury. There are cases where a determination can even be based solely on the fact that the contractor didn't (or more accurately couldn't) have their own cover.

For that reason, we always recommend that you talk to WorkCover in your state (iCare in NSW) to determine if you should have workers compensation insurance or not. But get the advice in writing!

Other Risks

There are other risks on your project, including injury to volunteers, damage to your Existing Structures (property existing prior to the start of this insurance), or theft of your own tools.

Our quote form takes about 90 seconds to complete, and will instantly e-mail you a quote including these options. Quotes are obligation free and are very simple to obtain.

We back up our quotes with our $50 price guarantee - if you find the same cover available cheaper, we'll beat that price by $50.

Why not get a quote and see what we can do for you today?

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People often ask us:

How can I protect my friends and family helping me on the project?

No one wants to think that family or a mate could get hurt on the project, so that's why we offer three levels of Volunteer Cover in our owner builder insurance quotes.

A Volunteer is ...

... someone working on the project as unpaid labour (including the owner builder and his or her spouse), and without the expectation of reward. Volunteers must be aged between 16 and 75, and be either the owner builder or working under the supervision of the owner builder. There is a maximum of 10 volunteers per owner builder project.

Silver Volunteer Insurance

Covers the volunteer against loss of income following injury on the owner builder project for 75% of gross weekly salary up to $500 per week. This covers the volunteer for up to six months following injury, and has a waiting period of 21 days.

Gold Volunteer Upgrade

Extends the benefit period to twelve months following injury, and reduces the waiting period to 7 days. 75% of non-Medicare medical costs are also included up to $750.

Platinum Volunteer Upgrade

Includes the Gold upgrade, and includes benefits for childcare expenses, spouse/partner training costs, and setting up an education trust fund for children of the deceased volunteer.

Medical Expenses

Australian law prohibits general insurance from covering many medical expenses - if you or your volunteers need cover for medical costs, we'd recommend that you look into Health Insurance.

Protect Your Volunteers

This insurance is a very cost-effective add on to your owner builder insurance package and is available with all of our quotes.

Getting a quote takes less than 90 seconds using our online form; we'll e-mail you a copy of the quote and the PDS instantly.

Why not see what we can do for you and your volunteers today?

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Recently someone asked us:

Why do I need owner builder insurance when I already have home insurance?

and occasionally people say:

I don't need public liability insurance because I already have it.

The answer to both of these is the same: Your existing insurance probably doesn't cover what you think it does.

Insurance 101

Just about every type of insurance you buy includes a public liability component. That's a good thing.

But you have to remember that the public liability cover is restricted to the type of risk you're insuring!

Home and contents public liability covers you as a homeowner and occupier only, not as an owner builder.

Motor vehicle public liability covers you as a vehicle owner and driver, not as an owner builder

Landlord public liability covers you as a property owner, not as an owner builder

Trades insurance public liability covers you as a tradesman, not as the principal of your own construction site (i.e. an owner builder).

So even though these insurances (and more) include public liability, that's not at all the same thing as owner builder public liability insurance.

If you're a builder, you're responsible for the site

No professional builder would work without public liability insurance, and we strongly recommend the same for owner builders. Whatever happens (or goes wrong) on the site, you're going to be involved as the principal. Even if you had nothing to do with the injury or the damage, as the builder the aggrieved party is almost guaranteed to involve you in the complaint.

What about damage to the project?

My home insurer said I don't need separate public liability insurance because my project is so small.

That might be correct (but please read your policy wording to be sure; direct market insurers don't generally give blanket assurances like that), but are your building materials insured? Raw construction materials aren't always considered "home contents", and they may not be considered "home buildings" either.

Owner builder insurance covers the raw materials on the site against damage or theft; whereas home insurance may not.

For that reason, we encourage all owner builders to get an insurance quote from us. Our online form takes around 90 seconds to complete, and will instantly e-mail you the quote and policy wording for you to read. Why not see how easy it can be today?

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In an ideal world, every owner builder would finish his or her project on time and on (or under!) budget.

But in the real world, projects have delays; the weather goes bad at a critical stage, tradesmen don't arrive on time, or the owner builder falls ill and can't work until fully rested.

Budget for the worst case ...

About half of all owner builders need to extend their owner builder insurance at least once, and some of those need to extend multiple times. Whilst no-one wants that to happen (we all want the project to complete on time and on a budget), it's important to make sure you have an insurer who can keep you covered through the delays.

... up to 3 years ...

We can cover owner builder projects for up to 3 years from initial commencement. Luckily not many owner builders need a three year policy (most complete within 18 months), but some do require extensions following major project delays.

Most of our competitors only offer a 2 year maximum; meaning the unfortunate owner builders needing a third and final year can be left in the lurch.

... then plan for the worst case ...

When choosing an owner builder insurance provider, why not ask some hard questions:

For how long can this policy cover my project?

What happens in 12 months' time?

When we extend, can we choose a shorter period (e.g. 3 months)?

What happens when we reach your maximum insured period (e.g. usually 2 years for none Allrisk companies)

... and get a quote from Allrisk

We can cover projects for up to 3 years from commencement; we contact you in (a little under) 12 months time to offer extension periods; we offer short extension periods (3, 6, 9, or 12 months) and can do shorter 1 or 2 months in some circumstances, and if you (unfortunately) need more than 3 years, we'll try to find you a fourth and final year of insurance.

Why take a chance that you could be left in a difficult position if something goes wrong on your project - why not get a quote from us today? Quotes take less than 90 seconds and are instantly e-mailed to you for review.

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Kenny Rogers might've said that you've gotta know when to hold 'em, and know when to fold 'em, but insurance doesn't work like Poker.

Occasionally people ask us if they can "pause" owner builder insurance during a build (maybe for a holiday, maybe while refinancing).

If you think about what the insurance is for, you'll realise that the question doesn't make a lot of sense.

Make sure you Hold 'em

...Simply put, owner builder insurance covers damage to your project or damage/injury to others during the build.

Even if you're not actually on the project site, those risks are still in force. Criminals aren't likely to break into your project to steal or vandalise while you're actually there; that sort of thing is most likely to happen when you've left.

That's why it's important to have 24/7 active insurance like our Owner Builder Insurance package and to keep making regular progress on the build.

... not Fold 'em

If you cancel your owner builder insurance during the build, what happens when something goes wrong? Just as you'd expect, you'd not be insured, and any damage or liability will be coming out of your pocket, not from your former insurer.

Owner builder insurance is pretty inexpensive for what it covers; the potential financial consequences of not having insurance could be pretty dire. Obtaining insurance doesn't have to be hard - our online quote form takes around 90 seconds to complete, and will instantly e-mail you a quote to review.

Why not get a quote today and see how we can come up Aces?

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Owner builder insurance is construction insurance - covering a non-professional-builder working on his/her own residential building job against damage during the build, and for public liability.

Construction insurance refers to protecting the works (the "contract works") against damage - e.g. fire, storm, earthquake, vandalism, theft of building materials, and other perils.

Public liability insurance refers to protecting the builder (the "owner builder") against claims of personal injury or property damage - e.g. a visitor on site being injured, or the neighbouring property being accidentally damaged by the build.

Other types of owner builder insurance include existing structures, your own tools, volunteers' loss of income following an injury on site, and workers compensation. These are all optional, and you should consider carefully if you have an exposure to protect.

Existing structures, for example, may not be insured under your regular home and contents insurance.

Workers compensation may be required if you're engaging sole trader contractors (who can't buy workers' compensation insurance covering themselves, no matter if you think that they should).

What isn't owner builder construction insurance? Faulty workmanship or faulty materials, and risks for which you have no personal stake. For example, you can't insure the tools and equipment belonging to your tradesmen against damage; only your tradies can buy insurance over their own property.

Options to consider: Quotes take around 90 seconds to obtain and are instantly e-mailed to you with a copy of the policy wording and explanation as to what is insured. We try to give you plenty of options to consider so you can pick and choose the exact insurance package that suits you - there are no hidden costs and you only pay for the insurance you need.

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Not all houses are made of bricks & tiles; owner builders can and do build homes from other materials with better insulation properties.

Straw Bale

https://www.yourhome.gov.au/materials/straw-bale" target="_blank" rel="nofollow">https://www.yourhome.gov.au/materials/straw-bale

Have you considered straw bale? It's surprisingly strong, very thermally efficient, and even has excellent sound dampening properties as well.

Rammed Earth

https://www.yourhome.gov.au/materials/rammed-earth" target="_blank" rel="nofollow">https://www.yourhome.gov.au/materials/rammed-earth

What about rammed earth? This has the advantage of high load bearing strength (up to three storeys) and superb insulation - we've heard reports that rammed earth homes maintain a constant inner temperature almost 365 days a year.

Green Roof

https://www.yourhome.gov.au/materials/green-roofs-and-walls" target="_blank" rel="nofollow">https://www.yourhome.gov.au/materials/green-roofs-and-walls

No room for a garden? Why not put the garden on your roof! What else were you going to use that space for.

Your House Your Way

Being an owner builder, you have the unique opportunity to do something different, which suits you. Not everyone wants to build a 4x2 brick and tile house in the suburbs - there's nothing stopping you from being creative and coming up with something unique.

Your Insurance Your Way

We take the same attitude to insurance - why not get a quote from us today? Our online form takes around 90 seconds to complete, and will instantly e-mail you a quote with all of the options spelled out. Don't pay for insurance you don't need, make sure your insurance package suits your owner builder project.

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Disasters can strike even the most meticulous owner builder project. People often tell us that "nothing could go wrong" - but that's sadly not the case.

Here are some examples of real claims just from the last 12 months (NB: details have been

edited for brevity and to preserve anonymity):

Brickie on a Forklift

The brick delivery contractor was to deliver some bricks early in the morning before our owner builder arrived to supervise. Neighbours reported that the delivery truck ran over part of the garden and side fence to start. To add insult to injury, the driver then clipped the corner of the house with his forklift, gouged the fence, then dropped the bricks in a jumble.

The delivery company later admitted responsibility, but only offered $3,000 recompense (actual damages were $12,000).

Moral:

Even if you think the damage is someone else' fault, if you don't have your own insurance, you might not get anyone else to pay!

Apprentice with a Hose

The concreter had finished pouring the carport slab, and instructed his apprentice to stay there and regularly cool the concrete with water from the hose... just before an Easter long weekend.

As far as we could tell, the apprentice abandoned the hose, and either forgot to turn off the water, or the clip holding the hose burst loose. Water poured into the house (sunken living room style) for three days straight.

Needless to say, turning the living room into a makeshift swimming pool caused quite a bit of damage!

Moral: Even if you hire competent tradesmen, things can still go wrong... and they always seem to happen at the worst possible time.

Hail to a Roof

Who jumps up on a ladder to check a colourbond roof after a storm? Certainly not the average builder, and why would you?

Six months after a major storm, our owner builder looked at his roof ... and discovered that it was entirely blanketed in small golf ball sized indentations.

The entire roof had to be replaced at considerable cost and aggravation; since the rest of the house was almost at completion status.

Moral: Freak weather events are outside of anyone's control.

Insurance is Available

And it's very simple to arrange. Our online quote form takes around 90 seconds to complete, and will instantly e-mail you prices, an explanation of what is insured, and the full terms and conditions.

Luckily these three owner builders were insured with Allrisk, and their claims were settled quickly. Why take a chance on "not buying insurance" when it's so quick and simple? Let us show you what we can do for you today.

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... isn't usually the way to start any factual discussion. Unfortunately, there is a lot of misinformation on the 'net and misunderstandings around the risks and legal obligations of owner builders; let us try to set the record straight.

Contractors having insurance is enough

This is a common fallacy we've talked about before. Even if you're 100% diligent and ensure that all of your sub-contractors have their own insurance coverage, what do you suppose that does for you?

Nothing

The contractor's insurance covers the contractor. It does nothing for you as the builder. You still need to insure your own legal liability and your own project against damage. No contractor insurance is going to pay to repair your project following storm or fire; that's up to you as the builder.

I don't need workers compensation for my "80/20" subcontractors

The "80/20" thing is something to do with income tax; it has absolutely nothing to do with the subcontractor being deemed to be your worker within the terms of your state workers' compensation act. Even if you think your subbies should have had their own insurance, at law sole trader contractors may be able to make a workers compensation claim against you.

Unfortunately, it's never as clear cut as we would like; working out whether a contractor is indeed a worker depends on the exact relationship between you and the contractor at the time of the injury. We always encourage owner builders to talk to WorkCover in your state (iCare NSW in NSW) to find out your exact obligations. But get the advice in writing!

The council said I need Warranty Insurance when building

The council's probably confused you with a registered builder. Warranty Insurance covers the risk of the builder going bankrupt and either being unable to finish the project or there being defects in the project discovered after completion. It makes no sense for owner builders (and is not required) during the construction phase - you can't exactly insure yourself against the risk of going bankrupt!

Hence owner builders do not need and absolutely cannot buy warranty insurance during the building phase. It's required only when an owner builder is selling the owner built property during the statutory warranty period, and even then only in VIC and WA.

While you're building, you need Owner Builder Construction Insurance.

My home insurers are covering the house while I renovate. Are they? Are they really? Have you asked specifically, and had assurance in writing?

Most home insurers are insuring homes for living in, not homes on and part of an active construction site. Most, in fact, say that they will not pay for any damage caused by the renovation. Some go further (depending on the value of the renovation) and say that they won't provide any cover for the home from any cause.

If that's the case, you need Existing Structures cover to insure the home building against damage. We offer two levels of cover (standard existing structures and deluxe existing structures) depending on what you need us to insure.

Then get the real info from the experts. At Allrisk we've been specialising in owner builder insurance for over 10 years, and can give you expert advice to save you money and make sure that you're not leaving yourself exposed.

Our online quote form takes around 90 seconds to complete, and will instantly e-mail you a quote along with various options to consider. Don't leave yourself short, and don't pay for insurance you don't need!

Let us show you what we can do for you today.

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