NSW Guide
Essential protections (before work starts)
The protections below are about managing real construction risks from day one — not just “selling later”. Put these in place before the first trade arrives on site.
1) The core insurances (the “must understand” list)
The names vary between insurers, but most owner-builders need to think in terms of these three buckets:
Contract Works (a.k.a. Construction Works)
Damage to works-in-progress and materials
- Storm damage, fire, vandalism/theft (depending on wording)
- Materials stored on site (often with conditions)
- May require security measures and locked storage
Public Liability
Injury or property damage to third parties
- Visitor injury, neighbour damage, accidental property damage
- Important even if you think “no one will be on site”
- Confirm limits and exclusions (hazardous work, height, demolition etc.)
Existing Structures (if renovating)
Protects the existing home while it’s being altered
- Many normal home policies exclude construction-related loss/damage
- Renovations are where owners get caught most often
- Confirm in writing what remains covered during works
Renovations & extensions: existing house insurance is where people get caught
This section is about avoiding the most common misunderstanding: “My home insurer said I’m still covered, so I’m fine.”
Mistake category 1 — Not confirming whether cover is valid (and under what limits)
- Is the policy valid at all during works? Some policies won’t respond once building works pass a threshold value.
- Does it depend on continued occupancy? Many policies change materially if the home is unoccupied (even temporarily).
- What conditions and exclusions apply during works? It’s not enough to hear “yes” — you need to know what it actually covers, and when.
Tip: ask for the answer in writing, and note the project scope/value you told them.
Mistake category 2 — Stopping at “it’s still valid”, then making extra assumptions
Even if your home insurer confirms the policy remains in force, people often assume that means it covers the same risks a construction policy does.
That assumption is usually wrong.
Why this happens
You’re speaking to a home insurance expert — not a construction risk expert.
A “yes, the policy is valid” answer is usually about the home policy continuing — not whether it covers construction-related risks.
The right way to think about the call to your home insurer
The purpose of contacting your home insurer is usually to work out whether you will need
Existing Structures cover (the third bucket) as part of a construction policy — not to decide that a construction policy is unnecessary.
For very small projects, a home insurer might cover more than usual, but it’s rare.
If you’re trying to check whether your home insurer could replace construction insurance, ask these three questions
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Will you cover legal liability related to the construction work?
This overlaps with what Public Liability is meant to handle.
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Will you cover new building materials on site during the project?
This overlaps with what Contract Works is meant to handle.
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Will you cover the new/altered building structures during construction?
This overlaps with Contract Works and (sometimes) Existing Structures, depending on what’s being changed.
If the answer to any of these is “no” (or unclear), assume you still need a construction policy —
and use the home-insurer conversation only as one input into whether Existing Structures cover is required.
Bottom line: asking the wrong question (“Am I still covered?”) can be almost as risky as not asking at all.
What matters is what is covered, when it is covered, and what is excluded.
3) Trades and subcontractors: don’t assume they cover you
Even if each trade has their own insurance, you still need to confirm how that interacts with your risk as the person controlling the worksite.
- Collect certificates of currency (public liability; sometimes professional indemnity)
- Confirm they are licensed for the work they are doing
- Use written scopes/quotes — vague scopes cause disputes
Simple rule
Their insurance protects them. Your insurance protects you. Sometimes both are needed. It's best to assume that as the builder in charge of the site, you will be considered to be at least partly (if not wholely) responsible.
4) Paperwork and records (the boring part that saves you)
Good records reduce disputes, make approvals easier, and are invaluable if there’s an insurance claim.
- Keep every approval, variation, inspection record and certificate
- Store trade licences and insurance certificates
- Keep photos of hidden works before they’re covered
- Maintain a simple site diary (dates, who, what happened)
Next step in the NSW process
Once protections are clear, your next priority is running the job with the right inspections and records.