Insurance cover exclusions

Type of policy: Public liability
Protecting the builder from liability for the cost of accidental damage to, or loss of, another person’s property.

Amount of cover
Enter the limit of indemnity of your policy (eg, $1m, $2m, $5m or $10m). The policy will also contain a number of extensions with their own sub-limits too.

Relevant exclusions (examples):
Faulty design and materials, faulty workmanship (although this can be included as an extension), damage to the property you’re working on, your own products, damage caused by a vehicle and damage arising from your professional advice. Full details are contained within the policy wording, which is available upon request.

Type of policy: Contract works
Protecting the project from hazards such as theft, vandalism, accidental damage, storm, flood, fire and natural disaster.

Amount of cover
Enter the sum insured for the project. This should take into account the full rebuild cost, including any materials and subcontractors supplied by the owner. There are also a number of automatic extensions, such as for professional fees and cost inflation, with their own limits.

Relevant exclusions (examples):
Damage to existing structures (unless included separately), consequential loss, contractor’s tools and equipment (unless included as an option), full or partial occupation before practical completion, defective workmanship and design. Full details are contained within the policy wording, which is available upon request.

Type of policy: Professional indemnity (errors & omissions indemnity)
Protecting the builder from liability for causing a loss to the third party which is not related to physical property damage – eg, failing to correctly follow a specification, unauthorised product substitution, poor subcontractor work, incorrect site layout.

Amount of cover
Enter the limit of indemnity of your policy (eg, $250,000, $500,000 or $1m). The policy may contain a number of extensions that may have their own sub-limits too.

Relevant exclusions (examples):
Property damage and injury, financial estimates, building surveys and inspections, faulty materials, financial failure. Full details are contained within the policy wording, which is available upon request.

Nature or type of guarantee: Ten-year Homefirst Builders Guarantee
Giving peace of mind to owners that if their builder can’t complete the work the insurer will arrange for another builder to complete the build, absorb any extra costs and guarantee to fix future defects.

Period of cover
Completion cover ends on practical completion of the project. Defects cover lasts for ten years, expiring on the date shown on the guarantee certificate.

Limits on cover
Loss of deposit and non-completion – 20% of the contract price to a maximum of $500,000. Defects – $1,000,000.

Exclusions on cover (examples)
Contractual disputes, consequential loss to property that is not part of the works or is insured elsewhere, significant variations, landscaping, driveways and septic tanks, defects that are within acceptable tolerances, wear and tear and aesthetic variances. Full details are contained within the policy wording, which is available upon request.