Insurances are a must for Sydney Builders
Sydney builders have several types of insurance available to them. Regular changes in legislation mean insurance is something you need to check up on when hiring a Sydney builder for a new home construction or renovation.
Use this guide to understand what insurance your Sydney builder should have and ensure you are fully protected before the work commences.
1.Public liability insurance
Your builder may be the best around Sydney, but they can’t control everything. Public liability insurance protects your builder against accident or damage from unforeseen circumstances or negligence. These policies will cover the builder in the event of death, injury, damage to property, or loss of property from the builder’s activities or the employee’s working for them.
2.Workers compensation
Workers Compensation Insurance is mandatory in every state. It’s vital because it protects the builder against claims from illness or injury for worker’s in the builder’s employ while they are on the job.
3. Home building compensation fund
The Home Building Compensation Fund was created for projects over $20,000. Licensed contractors who take on work exceeding this value are required to have a policy with HBCF. The cover must be in place before work starts, or any money is paid on the contract, including the deposit.
Before work commences, HBCF assesses the builders and tradespeople to ensure they are eligible for insurance cover. The resulting Certificate of Eligibility will determine how much work a contractor can perform.
An eligible Sydney builder must then apply for a Certificate of Insurance for individual projects for which they are contracted.
A Certificate of Insurance covers a homeowner in case of insolvency, the builder dies or disappears, or has their building licence suspended by NSW Fair Trading. You can find out more on HBCF at: https://www.service.nsw.gov.au/guide/home-building-compensation-cover#where-hbc-cover-is-required
It’s up to you to make sure your Sydney builder has all the necessary insurance cover before you sign a contract, so always ask to check if they are current. It’s also recommended to research your builder’s previous track record, experience, and qualifications.
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