What Is Town House Builders Insurance?

When looking to employ a town house builder for your construction project, one of the most important things you need to ensure is that the company is properly insured. But what insurance should you be looking for, and how do you tell whether the builder is being honest about their level of cover? You may also be wondering whether there is any additional insurance that you, as a homeowner, can take out to protect your assets. visit:-

Within Australia, town house builders are required by law to be insured, as this helps to ensure that their company meets all of the necessary regulations. The type of insurance that your builder has will either be called Builders Warranty Insurance or Home Warranty Insurance, depending on what state or territory you are in.

Having the correct insurance is imperative for a town house builder, as it will protect both them and you (the homeowner) should any accidents or problems arise during the construction process. Builders Warranty Insurance, for example, will cover you if a builder or subcontractor should happen to die or become injured on site, if they leave without finishing the project, and if their company declares bankruptcy. Insurance is designed to prevent homeowners from being out of pocket on a construction project, and to protect town house contractors from being sued by dissatisfied clients.

When looking to hire a town house builder, simply ask them whether they have the proper insurance and who their policy is with. If they are hesitant to tell you, or you have any suspicions about the legitimacy of the insurance policy, there is nothing stopping you from calling the insurance company. Just explain that you wanted to make sure the builder is insured with that particular company; most customer service representatives are happy to supply you with a yes or no answer.

If you want some extra protection, however, there are some insurance policies that you are able to take out on your construction project yourself. It is always best to double check with your builder before taking out your own insurance policy, however, as they may have one that already covers the following areas. A homeowner is able to take out: a ‘Builders Risk’ policy that protects against environmental damage, vandalism and theft during construction; a ‘Worker’s Compensation’ policy that covers injuries and loss of work during construction; and a ‘Liability’ policy that protects them against general liability claims.

Town house builders insurance is important for a number of very serious reasons, so it is always better to be safe then sorry. Check that your builder has the correct insurance before hiring them.

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