The Owner Builder Insurance or Home Indemnity Insurance is a compulsory need in many states in Sydney. The fact is, it is something that you should consider getting even if it is not a need in your own state. This insurance plan defends both the owner builder and the home customer in situation architectural or non-structural problems occur or are found. This also defends the customer of the property in situation the builder becomes financially troubled at any time within the assurance period.
Currently, the law requires that all homes valued over $20,000 should be covered by builder insurance policy. However, owner builder who carry on associated construction like a swimming pool, backyard landscaping or kitchen island counters need not get these constructions insured. It is mandatory for contractors including owner contractors to get this insurance policy before they even secure the building licence from the appropriate government agency. The insurance company will provide the builder with the Owner Builder Certificate. The builder will provide the homeowner with the insurance certificate.
The owner builder must take a house indemnity insurance plan if he wants to sell his residence within 7 years from the time of the finishing the construction of the property. He will then provide the possible customer with the insurance certificate before agreement. It doesn't matter whether the proprietor designer has merely designed an expansion or addition to his home; he needs to have this construction protected by the builder insurance plan from the very beginning.
Most insurance policy providers offer products that are intended for the public, so you wouldn't be able to alter them to meet your specific needs. However, when selecting an insurance provider, you may want to look for one that contains these plans in the package:
- Development Work Insurance plan. This insurance plan is perfect for owner contractors who need to protect themselves against threats that may occur during with regards to your home. Damage coming up from all sorts of threat impacting the structure or craftsmanship is covered by this insurance policy
- Public Responsibility Insurance. This helps secure the owner builder or the house owner in case someone becomes harmed inside or near the property. This plan also includes damages to properties near the home.
- Personal Incident Insurance plan. This offers protection to the owner or insurance plan owner in case of injury at home.
- Builder warranty insurance plan. This should be involved in your insurance policy if you plan to offer your residence within six months from the finishing the developing. This does not provide protection to the builder or proprietor builder. What this plan includes is the customer of the residence. Thus, it is transferable from one proprietor to another.