owner builder - insurance?

Hi all,
We're about to begin garage conversion to 2 bed 1 bath granny flat. I'd like to know what sort of insurances to get (to be wise) rather than taking on all options out there. I have contractors (plumber, electrician, carpenter) for less than $12,000 worth of work and contract.
My husband, brother-in-law, and I will be doing the general build. It's relatively a small job.

Thanks heaps!
 
Hi jsoe

In Cessnock I think the council uses a cost calculator which works on sq meteres.
So they work on what the construction is worth.
Not sure on your council.
You could try to argue the cost down.
Probably best to talk to council or I'm sure someone else here would Know.

Ironlady
 
Im sure you had all these questions when you were doing owner builder test, and you should know this.

-You need Public Liability 5milion
-You need Home Owners warranty if you are planning on selling your house within 6 years, and if the total amount was over $20,000
-You need contact works insurance.

Good luck.
 
HI all, Thanks.
Yes, I know the above are required. But they are also asking me to consider these:
Voluntary Workers Insurance
Home Owner Warranty Insurance
Home and Contents Insurance

Are they truly necessary? Total job will cost about $25,000 including materials. But contracts with plumber $10k and electrician $3k, so no individual contract exceeding $12k.

Thanks.
 
HI all, Thanks.
Yes, I know the above are required. But they are also asking me to consider these:
Voluntary Workers Insurance
Home Owner Warranty Insurance
Home and Contents Insurance

Are they truly necessary? Total job will cost about $25,000 including materials. But contracts with plumber $10k and electrician $3k, so no individual contract exceeding $12k.

Thanks.

I did an owner builder job a couple of year ago, relocated a house onto our block. From my experience Home Owner Warranty Insurance is not necessary unless you sell within 5 years.

Cheers,

Ben
 
Hi all,
We're about to begin garage conversion to 2 bed 1 bath granny flat. I'd like to know what sort of insurances to get (to be wise) rather than taking on all options out there. I have contractors (plumber, electrician, carpenter) for less than $12,000 worth of work and contract.
My husband, brother-in-law, and I will be doing the general build. It's relatively a small job.

Thanks heaps!

It all depends on what you tell your Certifier (or Council) your 'Cost of Works' are. For a conversion, you could get away with just writing $5,000 on the Application form and you wont need to do an Owner-Builder's Course (+white card: 1 day course).

As an Owner-Builder, you cannot buy NSW Home-Owner Warranty; this is only available for work done by aprinciple contractor (licensed builder). So imho there's no real win to buying insurances if it's just a conversion from garage to granny flat.

Assuming each tradie is licensed, your covered under consumer insurances through the Dept. of Fair Trading anyway.

Save yer $$ and spend it on quality inclusions imho.

Brazen.
 
As an Owner-Builder, you cannot buy NSW Home-Owner Warranty; this is only available for work done by aprinciple contractor (licensed builder).

Sorry to say this is incorrect mate. I have just done it twice in several months.

Should an owner-builder decide to sell their home within 6 years after completion of the work, the owner-builder will need to take out home warranty insurance where the market value of the whole project (including labour and materials) was of a certain value.

For contracts of sale entered into after 1 February 2012, home warranty insurance needs to taken out for work valued at over $20,000.

For contracts of sale entered into prior to 1 February 2012, home warranty insurance needs be taken out if the value of the project was more than $12,000.

All owner builder work is taken to be complete 18 months after the issue of the owner builder permit, unless the work is practically complete earlier than this, that is, the work is reasonably capable of being used for its intended purpose other than minor defects or omissions. (Note: a different definition of completion applies to owner builder work where legal proceedings were underway or were finalised before 25 October 2011.)

The contract for sale must:

include a note that an owner-builder permit was issued in relation to the work carried out
have the home warranty insurance certificate attached.

If home warranty insurance is not arranged, the purchaser can void the sale contract before settlement. The home warranty insurance scheme provides protection to a subsequent purchaser (successor in title) of a property where the purchaser is unable to have any defective owner-builder work (not apparent at the time of purchase) rectified because of the death, disappearance or insolvency of the owner-builder.

From 1 February 2012, home warranty insurance policies must provide cover of at least $340,000. Between 28 February 2007 and 31 January 2012, the minimum cover that had to be provided was $300,000.

Approved insurance agents and their brokers that provide home warranty insurance to owner-builders are listed under the Approved insurance agents page on the Fair Trading website.

Warning! - As an owner-builder you are guaranteeing the work you undertake. The next immediate owner of the property is entitled to the benefit of statutory warranties set out in the Home Building Act 1989, and can take you, the owner builder, to the Tribunal to enforce their statutory warranty rights. This may result in a money order against you.

If you should decide to sell within the 6-year period, make sure you contact the insurers well in advance of marketing your proeperty to check their requirements. http://www.fairtrading.nsw.gov.au/T...and_renovating/Becoming_an_owner_builder.html
 
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