What separates one insurance from another lies in the quality of the insurer. Quality of an insurer is measured by reputation, experience and commitment to the clients it serves.
‘We hear it every day, when it’s time to buy insurance nothing is a problem, but when you need them, it appears everything is a problem’, says Sam Greco, Chief Executive Qamvis Insurance Group owner of insurance brands Qtrust, Qiducia Underwriters and Insure online.
Owner builders should be aware that no insurance covers everything. Simple sales consultants make it sound simple: everything is covered! No, it’s not. The detail lies deep within the insurer, and this detail lies very much with the insurers understanding of owner builders as individuals and not company’s, the insurers reputation, and experience and client commitment.
When choosing insurance, owner builders are disadvantaged because it’s what to know about the Policy cover and how technicalities apply to the actual construction project specifics. Owner builder insurance is commercial grade insurance. It’s not house and contents and not car or travel insurance, so rules, terms and conditions are very different and are governed by different laws and precedents.
Example of weak insurance:
Identifying an owner builder as the principal contractor. By definition an owner builder cannot be principal contractor because they are the owner builder by legal definition (site owner and builder);
Subcontractors are insured under the principal contractor. See point 1 above. Poor and ambiguous insurance wordings by inexperienced owner builder insurers.
Claims or policy complaints are only available under NSW law. What about the rest of Australia, after all we don’t all live in Sydney. (As a matter of fact: more owner builders reside outside of Sydney metro than in Sydney).
Commenced works exclusions and embargoes;
When renovating or adding an extension excluding Public Liability cover across the owner builder’s entire residential site;
Escalation of cost allowances interpreted as increased cost of workings;
No brand insurance companies, foreign insurers and ‘never heard of’ insurance companies have very little understanding of owner building under Australian conditions. They generally advertise broadly announcing outlandish benefits such as free house paint or free books if you purchase insurance. Nonsense. Insurance is serious.
Insurance price Vs performance equation is unlike most purchases, where better quality equals higher price. Owner builder insurance premiums works in reverse. High quality insurers understand risks in far greater detail and thereby price all elements of cover which reflect actual risk. In other words premium is a truer reflection of the actual risk an insurer faces and thereby prices accordingly.
Qtrust Insurance works hand in hand with underwriters and their key personal (Qiducia Underwriting). With tens of thousands of owner builder construction projects insured under our hand, our underwriter’s offers first class protection with best in class premiums. Qtrust guarantees best price with a unique Price Beat Guarantee.
Asking family and friends for a helping hand is common practice when owner building. But, like all building sites they are inherently unsafe. Accidents happen. Doing the ‘right thing’ is making sure those you love and volunteered to help out, are insured against injury, loss of wages, medical expenses and long term disablement.
Categorised in: Owner Builder Insurance Cover
This post was written by Technical Underwriting Centre