Protection Works Insurance

Hi guys,

We were told that we need to organize protection works insurances for the construction of 2 townhouses in Melbourne and we are getting very conflicting views.

The building surveyor and VBA mentioned it needs to be taken out by the owner, i gave a few insurances brokers a call and all of them told me an owner can't take it out, despite what the act says. it needs to be taken out by the builder by adding an endorsement on their existing policies.

Anyone with similar experiences?

 

The brokers line matches my experience, builder's insurance (which they must have by law) covers PW

s93 of the act actually says;

... Before any protection work is commenced in respect of an adjoining property, an owner must ensure that a contract of insurance is in force, in accordance with this section, against....​

I read that as obligating an owner to ensure and verify that insurance is in force, not that an owner must personally take out the insurance.

I would still take this obligation seriously and make sure the builder's insurance complies fully with the act, and have another chat with the VBA/building surveyor to ensure that the proposed arrangement is acceptable.