If you’re building or renovating as an owner builder, owner builder insurance can be one of the most confusing and misunderstood parts of the process. Many owner builders are caught off guard when their home insurance is cancelled, online quotes are declined, or insurance is required before approvals are even issued.
This article brings together 8 questions asked inside The Owner Builder Club private Facebook group, with factual answers provided by Coverforce, the specialist we recommend for owner builder insurance in Australia.
The goal of the article is simple. To help you understand what’s required, why it matters, and how to avoid delays or costly mistakes.
1. Can I keep my normal home insurance if I’m renovating as an owner builder?
In most cases, no.
Standard home insurance policies generally do not provide cover when construction or renovation work is taking place at the property. This applies whether you're acting as an owner builder or engaging licensed and insured contractors to complete the work.
Construction increases risk, which is why most insurers exclude cover during this period. This is also why many owner builders find their policies cancelled or renewal quotes declined once renovations are disclosed.
✅ Key takeaway: Always speak with your insurer before commencing any construction to confirm whether your existing policy remains valid or whether owner builder insurance is required.
2. Who can recommend good owner builder insurance, especially in WA?
Owner builder insurance is a specialist product and is not widely available through mainstream insurers.
Coverforce operates Australia-wide, including Western Australia, with most communication handled via email. Phone support is also available if you need to discuss your project in more detail.
The insurer does not need to be physically based in WA, as long as they're approved to underwrite owner builder insurance for projects in your state.
3. What insurance is required when building as an owner builder?
Owner builder insurance generally provides cover for:
- Public liability, covering injury or property damage to third parties
- Contract works or property damage, covering the works under construction
Premiums are calculated based on factors such as:
- The total cost of the project
- Scope and type of works
- Location
- Stage of construction
Currently, only a small number of insurers offer owner builder insurance in Australia, including MECON, 360, and CGU.
4. Where is the best place to get owner builder insurance?
Coverforce provides an online quoting system designed specifically for owner builders.
The questions in the quote form are structured to collect all the information required to assess your project without the need for additional paperwork. In many cases, a quote can be generated within approximately 15 minutes.
Timeframes may vary depending on the specifics of your build. For example, if construction has already commenced, additional details will be required so the insurer can assess the risk.
5. Why do I need owner builder insurance before plans are approved or work starts?
In many states and territories, legislation requires owner builder insurance to be in place before approvals are granted or work begins.
This may include requirements from:
- State owner builder authorities
- Surveyors assessing plans
- Local councils
While it can feel wasteful if approvals or labour are delayed, there is unfortunately no way around this where legislation mandates insurance upfront.
Policies are issued for a 12-month term. Extensions may be granted upon application, but approval is at the insurer’s discretion. Each state and territory has its own requirements, so it’s important to check with your relevant authority.
6. Can anyone recommend owner builder insurance companies in Melbourne?
Yes. Coverforce operates Australia-wide, including Victoria.
Location does not limit your ability to obtain owner builder insurance, as the process is handled remotely. Most communication is completed via email, with phone support available if required.
7. Can I take out owner builder insurance for two years upfront?
Most owner builder insurance policies are issued with an initial 12-month term.
However, in some cases, a 24-month policy may be available if requested upfront. This requires a manual assessment by the insurer and is not guaranteed.
Before the end of the policy term, you may request an extension. Extensions are assessed at the insurer’s discretion, and the maximum total period of cover is generally limited to three years.
8. Is it possible to get owner builder insurance part-way through a build?
This can be challenging, but it may still be possible.
Insurers may be reluctant to offer owner builder insurance where a licensed builder has been terminated mid-project. This is due to the potential risk of defective or incomplete work completed prior to termination.
Insurance may still be offered, however premiums are often significantly higher. The final premium will depend on the remaining scope of works and the cost required to complete the project.
✅ A worthwhile read: Construction Lawyer Talks Building Disputes and Variations
To Summarise…
Owner builder insurance is a critical requirement and not something to leave until the last minute.
As an owner builder, it’s important to understand that standard home insurance usually does not apply during construction, only a limited number of insurers offer owner builder insurance, and insurance is often required before permits or approvals are issued.
Applying early is usually easier and more cost-effective than trying to secure cover mid-build, and requirements vary between states and territories.
Getting clear advice early can help you avoid delays, unexpected costs, and unnecessary stress during your build.
Good luck 🤞
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