Available Cover

Construction/Liability Insurance Cover

Owner Builder Warranty Insurance


Construction/Liability Insurance Cover

When building a new home or doing alterations and additions to your existing residence we recommend the following three types of insurance cover:

  • Construction Insurance
  • Public Liability Insurance
  • Workers Compensation Insurance

Construction Insurance

This policy combines Material Damage and Public Liability into one insurance cover. The Material Damage section covers such things as fire damage, theft, malicious damage/vandalism, or storm damage to the building works. For no additional premium there is cover for Removal of Debris after a claim, Professional Fees and Expediting Expenses up to 10% of the construction value. The construction cost should be calculated on the full replacement value of the structure so that a major claim or total loss is fully covered.

It is also possible to insure your existing home against damage to the structure as a consequence of construction activities under the existing property section of this policy. We would suggest that you check with your current home insurer whether they will continue to insure your building whilst the alterations are taking place. If not this section is for you.

Public Liability Insurance

The Public Liability section of this policy covers personal injury or property damage to third parties at the building site during the period of insurance. Under this policy cover is also available for vibration and weakening of supports to neighbouring buildings once policy requirements for such cover are met.

Workers Compensation Insurance

This information including the website links allow for a more detailed response to your inquiry about Workers Compensation.

A good piece of information is the workers or deemed worker link which helps define a contractor.

WorkCover NSW Assistance Service
Phone: 13 10 50
Hours: 8:30am - 5:00pm
Monday to Friday

If the owner builder will not be paying total wages greater than $7,500 to workers or "deemed worker" contractors over a 12 month period, and they do not employ apprentices or trainees, and are not a member of a Group for Workers Compensation (WC) purposes, they will not need to take out a WC policy as they will be regarded as exempt employers for the purposes of WC.As an exempt employer they will be automatically covered by the WC Scheme.

However if the owner builder does expect to pay wages to workers or "deemed worker" contractors more than $7,500 over a 12 month period, or they expect to employ apprentices or trainees on the worksite, or they expect to become a member of a Group for WC purposes, they must take out a WC policy with a WC Scheme insurance agent as soon as they are aware of these circumstances.

To determine whether a person is a worker, a "deemed worker" or a contractor, they would need to consider whether they employ person(s) on a labour only basis and will be directing them in their work, providing materials, etc. rather than engaging qualified trades people who will complete the work with no direction, expertise from the owner/builder. If an owner builder is unsure if they are employing deemed workers or contractors they should consider applying for a Private Ruling through WorkCover for clarity.

These changes to the WC legislation came into effect as from 30 June 2008, as follows :
All current and eligible NSW workers compensation insurance policy holders (eg. employers, principal contractors, strata corporations, some households etc.) who employ and pay workers, including domestic household workers and "deemed worker" contractors, less than $7,500 per annum in total, will no longer need to have a WC insurance policy. This will NOT apply to employers who employ apprentices or if the employer is a member of a Group for WC purposes in NSW.

Owner builders should supply a Subcontractors Statement to be completed by all contractors engaged to do work, so they have proof of the workers compensation status of each contractor.

Note : A new Subcontractors Statement is now available on the website, link above, to allow for the new WC legislation regarding the $7,500 minimum wages issue, ie. if the subcontractor is a Pty Ltd company or Sole Trader / Partnership with employees, BUT their wages are less than $7,500 per annum, there is now a facility on the new document to show they are exempt from needing a WC policy, covered by Note 6. on the second page of the Statement.

Special note : This same exemption status under Note 6. covers Sole Trader and Partnership contractors with no employees. Further, another change to this Statement is in relation to Note 1. on the second page of the document that refers to S.175 B of the WC Act 1987. This is specifically in relation to the principal contractor being able to withhold payment to a subcontractor if the Subcontractors Statement has not been supplied or is completed incorrectly.

Please Contact your Work Cover office in your own state for more information.

I hope this information is of assistance to you.

Three easy steps to obtain a quote:

  1. Download and complete the Construction/Liability Insurance Application.
  2. Download and complete the Workers Compensation Policy Request Application.
  3. Fax, email or post the completed forms to Brookvale Insurance Brokers.

We will email you a quote back as soon as possible. If you have any queries please call our office.



In New South Wales owner builders with a construction cost greater than $12,000 and who sell their property within 6 years are required to obtain Owner Builder Warranty Insurance. The policy covers the purchaser, or any subsequent purchaser of the property for defects in the event of death, disappearance or insolvency of the owner builder.

Documentation Checklist

As well as a completed application form, you will need to provide a Defects Inspection Report (no older than six months from the date of application). This can only be completed by a Registered Building Surveyor, Registered Building Inspector or accredited and insurer approved inspectors.

In addition to the above report, please also attach the following documentation:

  1. Completed and signed application form.
  2. Copy of the Council Building Permit/Approval or consent (for all works requiring owner builder warranty insurance).
  3. Copy of the Certificate of Occupancy or Final Notice of Completion.
  4. Copy of Certificate of Title or Council Rates notice.
  5. Copy of Termite Treatment Report.
  6. Copy of Electrical and Plumbing Compliance Certificates.
  7. Copy of Waterproofing Certificate.
  8. Copy of Department of Fair Trading Owner Builder Permit.

Building Inspection on completed Dwelling

The building inspector’s report on the completed dwelling will indicate the quality of the building works, the use of second hand materials and whether or not the works are complete. It is a completely different report to those that your engineer or certifier have provided during the construction process. This inspection report can be completed by an inspector appointed by you or the insurance company can arrange for an inspector to attend the site at your expense. Please enquire about the availability and cost of such a report in your area.

Note: Any defects, incomplete works or second hand materials listed in the Defect Inspection Report are excluded from this cover.

In order for us and our insurance company to provide you with superior levels of service, please ensure the following:

  • The application form is completed in full
  • All requested information/documentation is provided
  • The application has been signed and dated by all relevant owners of the property
  • The checklist is used to ensure compliance

Three easy steps to obtain a quote:

  1. Download and complete the Owner Builder Insurance Application.
  2. Collect the items referred to in the document check list.
  3. Fax, email or post the completed forms and documentation to Brookvale Insurance Brokers.

We will email you a quote back as soon as possible. If you have any queries please call our office.

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