Owner Builders, this is important.
When you choose to owner build, you’re stepping into the role of the builder. That means you’re responsible for running a safe, compliant and properly insured site.
Would a registered builder operate without insurance?
Absolutely not.
So here are my top tips when it comes to Owner Builder Insurance. Practical, no-fluff and based on what actually goes wrong on real projects.
1. Don’t Skip Insurance Just Because It’s a “Small” Project
Small budget does not mean small risk.
A short renovation or low-cost project can still result in:
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A serious injury claim
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Major storm damage
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Structural damage to a neighbour’s property
Public Liability claims alone can run into the millions. It’s simply not worth the risk.
2. Never Assume Your Existing Home Insurance Covers Renovations
If you’re renovating or extending your existing home, do not assume your current home and contents policy will cover you.
Most standard home policies exclude damage arising from construction works. Some projects can even invalidate your policy entirely.
Always notify your insurer and confirm – in writing – what is and isn’t covered.
3. Consider the Highest Practical Level of Public Liability
Public Liability is the big one.
If something goes wrong and someone is seriously injured, you want strong cover in place. Increasing your liability limit often doesn’t cost significantly more compared to the protection it provides.
This is one area where peace of mind really matters.
4. Check the Policy Duration
Some Owner Builder policies expire after 12 months.
Builds can and do run over time.
Before taking out cover, ask:
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What happens if my project exceeds 12 months?
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Can the policy be extended?
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For how long?
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What does it cost to extend?
You don’t want to discover you’re uninsured mid-build.
5. Understand Workers Compensation Exposure
Workers Compensation can be one of the trickiest areas for Owner Builders.
Whether it’s required and whether you have exposure depends on:
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Your state
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Whether you’re engaging sole traders or Pty Ltd contractors
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How those contractors operate
Sole traders cannot insure themselves for Workers Comp. If injured, they may attempt to claim against you or be assessed as a deemed worker.
Always ask your insurance provider whether Workers Compensation cover is recommended for your specific project.
6. Think About Volunteers Insurance
If friends or family are helping onsite – even casually – they’re considered volunteers.
There is specific cover available (often referred to as Voluntary Workers Insurance) that can help with:
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Medical expenses
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Income protection-type benefits
If you’re physically working onsite yourself, this may also be relevant.
Volunteer claims are more common than people expect.
7. Always Read and Understand the Policy
Insurance is full of terms and conditions.
Make sure you understand:
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What is covered
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What is excluded
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Any special conditions
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Excess amounts
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Notification requirements
If something isn’t clear, ask. Specialist advice matters in this niche.
8. Ask for Certificates of Currency
Before any tradie steps onsite, request a Certificate of Currency showing their insurance is current and paid up.
This should include:
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Public Liability
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Workers Compensation (if applicable)
This isn’t pushy, it’s smart.
If a contractor refuses to provide proof of insurance, that’s a red flag.
9. If Hiring a Pty Ltd Contractor, Verify Workers Comp Is Current
If a Pty Ltd contractor’s Workers Comp policy has expired and a worker is injured, the injured worker may claim against you.
Don’t assume. Check.
A simple certificate can protect you from significant exposure.
Final Thought
Insurance isn’t the glamorous part of owner building but it’s one of the most important.
Protecting your build means protecting your financial future.
Do your research. Ask the hard questions. Get specialist advice where needed.
And then enjoy the planning, the progress… and maybe even the owner building journey 🏡
Curious to understand the cost of Owner Builder Insurance? Click here to request a quote!