Broker-arranged
Owner-builder insurance
Building or renovating your own home under an owner-builder permit? You carry the risks a builder normally carries. Here are the covers owner-builders hold, the permit rules in NSW, Queensland and Victoria, and what applies when you sell. A licensed broker arranges it.
- NSW, Queensland and Victorian rules
- Contract works and public liability
- One short form, then a licensed broker takes it from there
What insurance does an owner-builder need?
Two covers do most of the work. Contract works insurance covers the building and materials during construction against fire, storm, theft and damage. Public liability covers injury to visitors, tradies’ clients or neighbours, and damage to neighbouring property. Owner-builders are arranged through a broker, because insurers look at the project, the site and who is doing the work.
Home warranty cover is the one you can’t get. Each state treats owner-builder work differently, as the table shows.
Permit and warranty rules by state
| State | Permit | Warranty insurance | When you sell |
|---|---|---|---|
| NSW | Needed for work valued at over $10,000 including GST. Education is required for work of $20,000 or more. | Home building compensation cover is no longer available for work done by an owner-builder. Contractors you engage must provide it if their contract is over $20,000. | Within 7 years and 6 months of the permit, the sale contract must carry a consumer warning, or the buyer can void it. The next owner can enforce statutory warranties at NCAT. |
| Queensland | Needed for a project valued at more than $11,000, after an owner-builder course for most people. | Owner-builders are not eligible for insurance through the Queensland Home Warranty Scheme. | A notation goes on the title. If you sell within 6 years of completion you must tell the buyer in writing. |
| Victoria | A certificate of consent from the Building and Plumbing Commission for work over $20,000 (raised from $16,000 on 1 July 2026). | Ensure any builder you engage for work over $20,000 has domestic building insurance. Owner-built work is insured through the BPC’s first-resort scheme, which applies to work done under a certificate of consent. | If you sell within 6 years and 6 months of finishing, you must take out domestic building insurance for work over $20,000 (cap $400,000 per dwelling from 1 July 2026) and provide a defects inspection report no more than six months old. |
Other states have their own permit schemes. Check your state’s building regulator.
What’s usually covered, and what isn’t
Usually covered
- The works and materials during construction, under contract works.
- Injury to visitors and neighbours under public liability.
- Damage to neighbouring property from your work.
- Theft of materials from the site, in many contract works policies.
Usually not covered
- Your own injury. Consider personal accident cover.
- Defects in your own work. That’s what the warranty rules are about.
- Your contractors’ work is covered by their own insurance.
- The finished home once you move in. Switch to home insurance.
How to get owner-builder cover through us
Owner-builder insurance questions
Do owner-builders need insurance?
Contract works and public liability are the covers owner-builders usually hold. Home warranty cover isn’t available for your own work in NSW or Queensland.
Can an owner-builder get home warranty insurance in NSW?
No. NSW says home building compensation cover is no longer available for work done by an owner-builder. Contractors you engage must provide it for contracts over $20,000.
What happens when I sell an owner-built home?
NSW requires a consumer warning in the contract within 7 years and 6 months of the permit. Queensland requires written notice to the buyer within 6 years of completion. Victoria requires domestic building insurance and a defects report if you sell within 6 years and 6 months.
Does public liability cover my tradies?
No. Each contractor holds their own. Your public liability covers claims against you as the owner-builder.
Why is owner-builder insurance arranged by a broker?
Insurers assess the project, site and who is doing the work, so a licensed broker arranges suitable cover rather than an online quote.
How often can you get an owner-builder permit?
Not every year. NSW issues one owner-builder permit in any five-year period unless the new application relates to the same land or you can show special circumstances. Queensland issues one permit every six years, with exemptions limited to a serious medical condition or severe financial hardship. Other states have their own limits, so check before you plan the next project.
What are the risks of being an owner-builder?
You take on the builder’s responsibilities: safety on site, supervising trades, defects, and the warranty and disclosure rules when you sell. You also arrange the insurance a builder would normally carry. Construction cover for the works, public liability for visitors and neighbours, and workers compensation if you employ anyone directly are the usual set.
Keep reading
More broker-arranged cover
Sources
- NSW Government: When an owner-builder permit is needed
- NSW Government: Working as an owner-builder
- QBCC: About owner-building
- Consumer Affairs Victoria: Owner builders
- business.gov.au: Types of business insurance
- NSW Government: How to apply for an owner-builder permit
- QBCC: Rules for previous owner-builders
- Building and Plumbing Commission: Selling an owner-built home
- Legal Practitioners’ Liability Committee: Changes to owner-builder insurance from 1 July 2026
Owner-builders