Home Owner's Warranty insurance for reno

Strata provided some guide on applying for renovations for an apartment. It mentions anything above 20K requires Home Owner's Warranty insurance.

Is this to protect the home owner/body corp should there be damage/issues with the builders doing the renovation ?

Is this insurance something I (as landlord) should be getting ? or is it something from the builder doing the work ?

And I needed to get it, it is somethign covered by the usual landlord policies, like Terri Scheer/EBM has ? Or is this seperate policy just for reno works ?

thanks

 

In NSW any supplied building works over $20k in value are required to supply home warranty insurance for the works.

This is to protect you as the owner

 

Thanks Stoffo - but who pays for this insurance ? As the owner, do I need to go get it ?

 

Builder takes out this insurance, you pay for it.

 

What Scott means is that it is the responsibility of the builder to take out and pay for this insurance.
But ultimately it is added to the job costs by the builder, so result is you pay indirectly.

I am sure that it regularly isn't actually taken out by those cost cuting or dodgy types.....

If you have agreed to any works over $20k and paid a deposit I'd ask for a copy prior to works starting.

It is always better to be proactive now, than later finding your new bathroom leaks into your lounge below and the person who did the work has since been paid and is ignoring your calls !!!!

 

thanks everyone
haven't engaged a builder yet, just saw it as a document request from Strata. It'll be one of the questions I"ll ask when deciding which builder to go with

 

Could I clarify what's being said here: "builder takes out this insurance" Does this mean the builder is the one who is covered?

How'd you go with this @tattoo? Was it as straightforward as the others were saying - builder insured and their fees to you included the cost?

 

I think I've found my answer: Contracts

(for anyone else who stumbles across this thread in the future)

 

Builder will need to submit license and policy details for council approval anyway. Assuming council needs to approve. Only licensed builders can get warranty insurance. The other exception is a owner builder which strata wont agree to. They want it insured and also with recourse to a license. The builder license is liable for trades they or you engage eg plumber etc. His license is on the table for compliance with the building code and approvals.

 

Cheers @Paul, if I understand correctly, the builder is the one who is insured?

I've seen a few mentions of council approval for internal alterations for a unit and never understood this. A bit off topic, but unless the externals of the building are being changed (and even then, it doesn't apply to things like air conditioners) why would council approval be needed? Specifically asking about Sydney areas (CBD, Eastern Suburbs, Inner West or Northern Beaches).