Kit home. Relocatable Home Insurance. Owner Builders

May 9, 2018 8:46 pm Published by Leave your thoughts

Kit Home, steel frame homes or sheds, ‘panalised’ homes and pre fabricated residences are all insurable. Qtrust experience, knowledge and our clients is our promise.

In the olden days of the 20th century, a kit home was describe as a componentised or CKD (complete knock-down) home, shed or garage. The market was driven by small, home grown suppliers and targeted the budget end of the building segment. Today, a kit home can mean a prefabricated home, steel frame home or farm shed, panelised constructed home and DYI Kit Home. From an insurance view point each of these broad terms will mean different risk profiles to the insurers. The ‘Kit Home’ segment is growing as suppliers improve their quality, range and visual appearances. The benefits of choosing the Kit Home option is very appealing:

  1. Cost effective home ownership
  2. Owner build option saves tens of thousands of building dollars
  3. Numerous designs, options and custom build options available
  4. Can be more environmentally friendly because of building materials choices

A purchaser of Kit Home will need to consider insurance aspects early in the selection process and before they settle on a particular brand or type.

Insurance considerations will fall into the following categories:

  1. Vacant land risks – construction site
  2. Actual Kit Home elements upon arrival at the construction site
  3. The construction and assembly process
  4. Transportation of the Kit Home to the site
  5. Manufactures warranty
  6. Home Warranty or home indemnity
  7. Public liability risks
  8. Personal accident risks
  9. Subcontractor liabilities

Quality Australian Insurers understand this important home building segment and make special allowances for the uniqueness of risks and circumstances that many Kit Home purchasers confront.

Our Clients benefit and rest easy because our Team has reviewed, served and assisted more owner builders than any other insurance firm anywhere across Australia (‘tens of thousands’ owner builder insurance policies signed-off ). We know detail.

For over 10 years Qtrust in-house experience has served and insured Kit Home projects across Australia, including Christmas Island and Cocos (Keeling) Islands. Qtrust clients benefit when our expertise informs Kit Home purchasers on risks and high alert exposures. When our Financial Services accreditations and experiences inform and guide owner builders on what they really need to know; in detail, so we leave the glossy sales talk to the ‘pretenders’, because owner building is risky for the ill-informed or ill-prepared.

Qtrust can insure Kit Home projects. Provide our team members with details of your project, including the following:

  1. Brand and model of the Kit Home
  2. How will the Kit home be delivered to the building site
  3. Number of drop offs and where is it to be dropped (on site or nature strip)
  4. Site security arrangements
  5. Brief outline of the construction schedule
  6. Who will assemble (are they qualified and insured?)
  7. Value the Kit Home on delivery and value at completion

5 ‘red flags’ that owner builders should watch out and avoid;

  1. When an insurance broker talks in retail sales spiel and light on detail. Insurance is all about detail.
  2. When a Kit Home vendor delivers the to the front gate and not on site.  Owner builders should not be responsible for delivery risks: ensure delivery and insurance is included in the Kit Home purchase price;
  3. Kit Home supplier avoids recommending appropriately qualified installers or builders to assist with assembly. Their may be a long term Home Warranty obligation for the owner builder;
  4. Home Warranty obligations will be required. Plan for it – but speak to our Warranty underwriters for precise details;
  5. Taking on the project with no experience or skill to complete to lock up within 12 months.

Kit Home, Steel Frame homes or Sheds, ‘panalised’ homes and pre fabricated residences are all insurable. Qtrust experience, knowledge and our clients is our promise. 24/7 contact or directly 1300 798 991

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This post was written by Technical Underwriting Centre

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