What insurance do I need to ask for from my new home builder?
Most people sign their building contract thinking insurance is sorted because the builder has it covered.
That's the assumption that costs homeowners thousands when things go wrong.
Here's what actually happens: You hand over your deposit. Construction starts. Then your builder stops showing up. Or goes insolvent. Or just disappears.
You call them. Nothing. You panic and start googling. That's when you discover the truth: insurance was supposed to protect YOU, not them. And because you never asked for proof it existed, you're stuck holding the bill to finish your half-built home.
The false assumption that traps homeowners
You want a protected build. You think choosing a reputable builder creates that protection. But here's the problem: reputation doesn't equal insurance coverage.
I've worked with clients who chose award-winning builders, only to discover midway through construction that the insurance certificates were never provided. One client, Sarah, trusted her builder's "industry standard" assurances. When he abandoned the project six months in, she learned the hard way that "standard" meant nothing was actually in writing.
It cost her $47,000 and three months to get another builder to finish the job.
What really creates protection isn't trust, it's verification. Before you pay a single dollar.
The three insurance certificates that protect your build
Your building contract lists three essential policies, but if you don't request and sight the actual certificates before paying your deposit, you have no way to know if you're covered.
Before you hand over any money, ask your builder for these three certificates:
Domestic building insurance (DBI) covers you if your builder becomes insolvent or can't complete the work. It protects against structural defects for six years and non-structural defects for two years after your build finishes.
Contract works insurance (CWI) covers loss or damage during construction. The coverage amount should be your contract value plus 15%.
Public liability insurance covers injuries or death on site. Coverage should be at least $5 million per claim.
These aren't nice to haves. Under every standard Australian building contract, your builder must have all three in place before requesting a deposit.
A quality build starts with a quality contract
Insurance certificates are just one piece. Your building contract is full of clauses that either protect you from cost blowouts and delays, or leave you completely exposed to them.
Most homeowners don't realise their contract is negotiable. Or that "industry standard" often means "standard risk." The details matter more than the template.
That's exactly why I created the Building Contract Health Check service. Before you sign, we go through your contract together and identify:
Where your contract allows for surprise price increases
Which clauses actually prevent cost blowouts and delays
What insurance requirements protect you (and how to verify them)
Simple changes that shift risk away from you and back onto your builder
Because the best time to protect your build isn't when something goes wrong. It's before you sign on the dotted line.
