The question we get asked all the time as an Owner Builder, ‘how do I get the best price when all the other houses we are competing with have Builders Warranty in place and our Owner Built home does NOT’!
You can understand the question as you, (Owner Builder) will be buying someone else’s home and will want Warranty Insurance in place to protect you and your family if a Structural defect occurs.
You have two options –
Firstly
Owner Builder Warranty (Voluntary)
It is not a mandatory requirement in NSW to provide, as Registered Builders are, but you are able to provide our Owner Builder Warranty to the purchaser, underwritten by APRA approved insurer Asset Insure.
The product is based on the previous mandatory product.
· 6 Year policy from Occupation Certificate.
· Defect Inspection Report required, any defects, incomplete works and second-hand building materials noted are exempt.
· You are responsible and insurance activates only if you die, become insolvent or disappear.
· Coverage up to $200,000
· Coverage for Structural Defects.
Or Secondly
Latent Defect Insurance.
Protects you the Owner Builder in the event a Structural Defect occurring, and it is TRANSFERRABLE, so it protects you while you are living in your home and is transferrable to a purchaser(s) for 10 years from the Occupation Certificate.
Benefits of Cover for you!
| 10 – year Non-cancellable policy | Transferrable to future owners |
| No delays over whose fault | Owner/Builder Protected |
| Asset Protection | Avoid delays due to litigation |
| Insurer Certain underwriters at Lloyd’s | No delays over remedial work |
| Increased Asset value by having insurance protection | As the Insured you are NOT responsible for rectification |
The advantage of Latent Defect Insurance is that you do not have the worry, that a Structural defect could occur until years later, when rectification will cost a fortune.
For more information, Click here.