Owner Builder Insurance ran out

Hi all,

My Owner Builder insurance policy has a max timeframe of two years, they do not offer any extensions further than that. I had the property sitting vacant for over a year waiting for plans and permits to finalise and only started the construction not that long ago, but my 2 year time period was ticking from day one and has now expired.

I spoke with another broker who has given me a quote to step in and insure this project that has already commenced, but the thing is its with the same underwriter that I'm with currently. Can I start a new policy with this same underwriter who wouldn't offer me more than a 2 year extension on the existing policy? Or does that make the new one void? They musta have so many policies coming through every day perhaps they wouldn't even notice there was already an existing one in place in the past.

Thanks

 

I suspect this is something you need to ask the insurer!

Was it just an extension that was the problem - would it have been fine to start a new policy, rather than an extension, with the old insurer? Did you ask your original broker?

The reason for the extension limit might be that they need to take increased costs into account - so a new policy might be fine where an extension isn’t.

 

Read the legislation for the requirements for the necessity to effect insurance as an owner-builder.

Who is covered and for what outcome?

Does it cover you if the sub-contractor fails in their obligations to complete the work or if they don't honour warranties etc?

Or does it provide protection for a purchaser within X years of completion?

What are your options? Eg have each contractor provide the insurance coverage? Take out insurance for the balance of the statutory warranty period only if you sell?

Why did you effect insurance before you had building approvals in place? What was it covering?

 

The main reason I wanted the insurance was to cover the existing structure. I bought this home in a very bad state and have been renovating it, my understanding is as its a building site the standard home insurance would not cover if something happened.

Its not the subbies etc that im worried about as they have their own insurance, its more so if the house burns down half way through. Does that sound reasonable? For that reason im seeking to extend the owner builder policy

 

Good thoughts - The old broker said this underwriter has a max period of 2 years so they wouldn't extend the policy further. But the new broker, who uses the same underwriter, seems to let me take out a brand new policy with them.....not sure if it would hold up if everything hit the fan or if that's OK.

The problem is this underwriter does 95% of owner builder insurance, so the quotes from others are significantly (more than double) more expensive

 

Did the old broker not suggest just creating a new policy with the original company?

 

Home Owners Warranty insurance doesn't cover the existing building only the default of the builder to complete the new works or rectify issues.

Essentially, you got the wrong policy for the existing building.

A contract risks policy might be more suitable however builders generally exclude the existing building from their policy.

 

The OP didn’t say it was warranty insurance.

They referred to owner builder insurance - which I took to be insurance for the build (rather than warranty insurance which isn’t needed until the owner builder sells within a certain time frame)

 

As it's the most common form of owner-builder insurance I read it as HOW not buildings insurance (public liability, construction risks, fire etc).