What's the best insurance for builders and developers?
Building, renovating or buying a Home, Apartment or Commercial Building?
New building defects are so common that the building industry considers them inevitable! A study by Deakin University of 212 building audits in three states found that more than half of high rise blocks have at least one defect ranging from fire protection issues, waterproofing, roof and rainwater disposal, not to mention serious structural issues. As the recent news reports will attest, in Australia New South Wales buildings are by far the worst, with 97% having more than one fault, followed by Victoria at 74%.
Standard insurance policies don't cover defects
So how can developers and builders ensure they're covered for building defects?
The solution is a little known Latent Defects Insurance policy which covers new homes, renovations and extensions, apartments, office and commercial buildings.
Why buy a Latent Defects Insurance policy when builders carry their own Contract Works Insurance?
Unlike Contract Works Insurance, with Latent Defects Insurance there is no need to prove negligence or fault. This means no delays or costly legal battles. If a defect exists, then it's a claim. So the process is much more straight forward than other insurance options when the right cover is chosen. Therefore customers avoid being left without cover and save significant time and money when they need to claim.
Protect your asset and sleep easy
Latent Defects Insurance is a 10 year non-cancellable policy which can be fully transferred to future owners.
How does it work for Owner Builders?
Once the defect has been identified and accepted by the Insurer, remedial work can begin. The Insurer pays for the work and seeks recovery of the costs from the tradesman or professional service provider
When does cover start?
The cover commences 1 year after the final completion certificate has been issued. It covers the cost of repairs, replacement and/or strengthening of the building for up to 10 years.
If you have any specific questions about the best insurance options for you, contact Peter Kelly.
General Advice Warning
The information provided is to be regarded as general advice. Whilst we may have collected risk information, your personal objectives, needs or financial situations were not taken into account when preparing this information. We recommend that you consider the suitability of this general advice, in respect of your objectives, financial situation and needs before acting on it. You should obtain and consider the relevant product disclosure statement before making any decision to purchase this financial product.
Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by Peter Kelly.