I’m told I’m covered against negligence, but where is it written? I’m renovating as an owner builder

July 11, 2019 5:38 pm Published by Leave your thoughts

Negligence is overwhelmingly the single biggest risk when hiring subcontractors. Engaging, hiring, recruiting contractors is basic bread and butter owner builder renovator practice.  But cognitively an owner builder is acutely aware of these risks even though they may boast “nothing is going to happen”, but what if something does happen?

The core strength of Qtrust’s focus is liability insurance, which protects an owner builder against financial loss, if actions, negligence or the condition of a property is found to cause personal injury, death or other person’s property damaged or is destroyed or others suffer loss all as a result of an owner builder renovator undertaking renovation works. This protection does not mean a homeowners holds no responsibilities, because as the site, homeowner an owner builder does hold responsibilities

Why some owner builder policies are bad value, and just plain ‘junk’?

  1. Owner builder Insurance is one of the most confusing markets for the inexperienced commercial insurance buyer. We should expect where consumers (no experienced commercial insurance buyers) collide with commercial conditions an insurer provides clarity and common-sense.
  2. Foreign or non-domicile insurance companies looking for quick wins. These are identified by checking-out the actual insurer standing behind the insurance. Look for a proprietary (Pty Ltd) insurance company because this means it’s small and annual revenues are generally below $25million and 50 employees.
  3. Broad, undefined cover conditions probably reflecting little value to actual owner builder risks.
  4. It’s absurd that some policies include cover for items which can never be claimed against such as workers compensation.

Qtrust calls for some action to end junk insurance policies as they offer little value to consumers. Insurance should not leave policy holders second guessing on their cover details.

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This post was written by Technical Underwriting Centre

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