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Owner Builders Insurance

Building it yourself? You're the builder, and you need builder's insurance

Storm damage, theft, accidents, defects, when you’re the owner-builder, you’re responsible for everything that goes wrong. Owner-Builder Insurance protects your project and investment from groundbreaking to completion.

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What could go wrong

(and why you need this)

As an owner-builder, you’re the builder, the project manager, and the one liable for everything. Storm damage, site theft, injured contractors, structural defects discovered later, you don’t have a head contractor’s insurance to fall back on. One major incident during construction can cost you tens of thousands and potentially leave your project unfinished and unfinanceable.

Scenario 1

The storm mid-construction

You’re halfway through building your commercial workshop. The frame is up, and the roof is partially on. A severe storm hits. Wind rips off temporary coverings, rain damages timber framing, and materials are scattered across the site.

Damage: $45,000*. You need to restart the structural work and replace the damaged materials.

What Owner Builders Insurance covers

Storm damage to incomplete works, damaged materials, costs to make safe, and rebuild costs to get back to where you were.

Scenario 2

The site theft

Your building site is hit by thieves three times over a two-month period. Total stolen: $28,000* in materials (timber, copper pipes, electrical cable, tools).

Each theft delays the project. You’re now 8 weeks behind schedule and facing cost overruns.

What Owner Builders Insurance covers

Theft of materials from the site, damage from break-ins, temporary fencing and security upgrades, and investigation costs.

Scenario 3

The tradesperson injury

You’re managing the build yourself, but you hired a plumber for specialised work. He falls from scaffolding and breaks his leg.

He’s suing you for $120,000*, claiming that inadequate safety measures were taken. You thought his own insurance would cover him.

What Owner Builders Insurance covers

Public liability for injuries to contractors and tradespeople on your site, legal defence costs, compensation payments, and investigation expenses.

Scenario 4

The defective work discovered later

You complete your build. Twelve months later, structural cracks appear. An engineer investigates; the foundations weren’t built to spec.

Rectification: $85,000*. Your building certifier is claiming you’re liable because you were the builder.

What Owner Builders Insurance covers

Defects liability (if included), legal costs to defend claims, costs to rectify if you’re found liable, and engineering investigation fees.

What this actually covers

Owner Builders Insurance

Owner Builders Insurance (also called Home Warranty Insurance or builders’ warranty) protects DIY builders:

Contract Works / Construction cover:

  • Buildings and structures under construction
  • Materials stored on site
  • Temporary works and scaffolding
  • Demolition and site preparation
  • Renovations and extensions
  • Fixed plant and equipment

Events covered:

  • Fire, storm, and flood
  • Theft and vandalism
  • Accidental damage during construction
  • Collapse or structural failure
  • Malicious damage
  • Impact from vehicles or falling objects

Public Liability:

  • Injuries to tradespeople, contractors, or visitors
  • Property damage to neighbouring properties
  • Legal liability during construction
  • Legal defence costs

Home Warranty / Defects Liability:

  • Structural defects discovered post-completion (usually 6 years)
  • Major defects in construction (usually 2 years)
  • Non-completion if you can’t finish
  • Loss of deposit protection for buyers

Optional extras

  • Professional fees (architects, engineers for redesign)
  • Removal of debris
  • Existing structures damaged during works
  • Legal expenses for disputes
  • Contract default (if contractors abandon)

What's typically not covered

  • Defective design (unless you designed it negligently)
  • Normal maintenance costs
  • Market value changes
  • Cost overruns from poor planning
  • Your own labour costs

When you need this

By founder stage

Start smart

Pre-launch to first year

You need this before you start if you’re:

  • Building commercial premises as owner-builder
  • Constructing workshops, sheds, or storage
  • Doing major renovations (over $20k in most states)
  • Building rental or investment property
  • Self-managing construction with subcontractors

Legal requirements:
Many states require owner-builders to have Home Warranty Insurance if building value exceeds thresholds ($20k-$30k depending on state). Check your state regulations.

Typical coverage

Full contract value plus 15-20% contingency, public liability $20M minimum, defects cover for statutory period.

Scale strong

During construction

Monitor your cover:

  • Ensure the sum insured covers cost overruns
  • Extend policy if the project runs over time
  • Add any scope changes or variations
  • Keep receipts and records for all work
  • Document progress with photos

Stay in touch with Pocket

You need to stay in touch with us to keep on top of your coverage.

Stay protected

After finishing

  • Maintain defects liability cover for the statutory period
  • Keep all documentation (invoices, inspections, approvals)
  • Notify insurer of practical completion
  • Ensure cover continues until handover or sale

Typical coverage

This is where things get custom, and you need to talk to the team at Pocket to evaluate your specific needs.

Common questions

Founders actually ask

Do I really need this if I'm a qualified tradesperson?

Yes. Even if you’re a qualified builder doing your own project as an owner-builder, you still need owner-builder’s insurance.

It’s about protecting your investment and complying with statutory requirements, not proving competence.