Owner builder insurance is a legal necessity in most states, and is highly recommended even if it is not a legal requirement in your area because it provides the necessary coverage to successfully complete your project.
In this article, we will discuss a few tips for beginners.
So you have decided to take matters in your own hands and have decided to become an owner builder? Whether it is renovation, reconstruction, or a construction project where you build your own home, it is necessary that you are covered from the very initial stages.
Several owner builder insurance providers are offering products that cater to the general public but cannot be modified to meet your individual needs.
When selecting an insurance provider, you must ensure that the following aspects are covered.
Construction Works Insurance Construction works insurance protects you from several risks that can be encountered during the construction phase.
Damage from fire, water, natural and human induced hazards, problems in workmanship etc.
are all covered.
Some natural hazards are not covered in different regions, for example a tornado or an earthquake may not be covered in most cases.
Have a discussion with your insurance agent to make sure every possible risk is covered.
Public Liability Insurance The public liability insurance protects you from liability if anyone is injured at or near the construction site.
Damage to someone's property at or near the site is also covered in this insurance and therefore it is highly recommended that you include this in your owner builder insurance package.
Personal Accident Insurance Coverage This insurance provides coverage for you if you are injured at the construction site.
Many owner builders like to be present at the construction site and more often than not end up helping the workers at the site.
If there is such a case where the owner builder is injured and therefore cannot attend his or her day job, the personal accident coverage can be a real life saver.
Builders Warranty Insurance If you are planning to sell your property after completion of the construction or within six months of the construction, the owner warranty insurance can really come in handy.
The owner warranty insurance does not provide coverage to the owner builder, it provides coverage to the buyer of the property.
It is a legal necessity so it is not a good idea to ignore it.
In conclusion, it is important to realize that every construction site and every construction project faces different risks.
Therefore, they must be covered for different risks.
An owner builder insurance policy good for one site may not be good for another.
It is important to get several online quotes before choosing an insurance provider.