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Owner-builder insurance in NSW
In NSW you need an owner-builder permit for work on your own home worth more than $10,000, and the education requirement starts at $20,000. Home building compensation cover isn’t available to owner-builders, so the protection during the build is construction and public liability insurance you arrange yourself, and the protection for a future buyer is a consumer warning in the sale contract. Here is how it fits together.
- Permit over $10,000, education from $20,000
- Why owner-builders can’t get HBC cover
- The 7.5-year consumer warning when you sell
What an owner-builder in NSW needs
An owner-builder permit for work valued at more than $10,000 (including labour, materials and GST) on a single dwelling, dual occupancy or secondary dwelling that needs development consent or is complying development. For work of $20,000 or more you also complete the approved owner-builder education units, and every applicant holds a white card. Licensed tradespeople do each category of licensed work. The insurance for the build itself is yours to arrange.
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.
The NSW rules at a glance
| Rule | What applies |
|---|---|
| Permit threshold | Reasonable market cost of the work, including labour and materials, over $10,000 including GST. |
| Education | Approved owner-builder education units or equivalent accreditation for work of $20,000 or more, plus a SafeWork NSW white card for everyone. |
| One permit per five years | Unless the application relates to the same land or special circumstances apply. All owners of the land are listed on the permit. |
| Home building compensation | Not available for work you do as an owner-builder. Contractors you engage must provide it where their contract is over $20,000. |
| Selling | Within 7 years and 6 months of the permit, the contract must carry a consumer warning, or the buyer can rescind. Later owners can enforce the statutory warranties against you. |
| Licensed work | Plumbing, electrical, air conditioning and other licensed categories must be done by the licence holder for that category. |
What owner-builder insurance covers, and what it doesn’t
Two policies carry the build in NSW: construction cover for the works and public liability for everyone else. Warranty cover is a separate question that only arises when you sell.
Usually covered
- The works under construction against fire, storm, theft of materials and vandalism, from slab to lock-up.
- Injury to visitors, neighbours and passers-by, and damage to their property, under public liability.
- Voluntary workers, such as family and friends who help, under an optional extension.
- Materials in transit and on site, where the policy includes them.
Usually not covered
- Your own tradies’ work. Each licensed contractor carries their own liability and, over the state threshold, their own warranty cover.
- Employees you pay. That’s workers compensation, which is compulsory once you employ.
- Defects in your own workmanship, which no construction policy covers.
- The finished home once it’s occupied. Switch to home and contents cover at completion.
What sets the premium for an owner-builder policy
Request owner-builder cover through us
NSW owner-builder questions
Can an owner-builder get home building compensation cover in NSW?
No. Home building compensation cover is not available for work done under an owner-builder permit. Contractors you engage for work over $20,000 must provide it for their own contracts. Buyers are protected by the consumer warning and the statutory warranties instead.
What does the consumer warning say?
That the home was built under an owner-builder permit and that home building compensation cover doesn’t apply to the owner-builder’s work. It must appear in any contract to sell within 7 years and 6 months of the permit, or the buyer can rescind the contract.
Do I need a white card to be an owner-builder in NSW?
Yes. A general construction induction card from SafeWork NSW, or an equivalent interstate card, is part of the permit application.
How much does owner-builder insurance cost in NSW?
It depends on the contract value, build type, duration, liability limit and site. We don’t publish indicative prices until our insurers’ rates are confirmed; a broker quotes from your actual figures.
Is owner-builder insurance compulsory?
Construction and public liability cover isn’t required by the permit itself, but lenders usually require it before drawing down, councils and neighbours expect it, and a fire or a visitor’s injury with no cover falls on you personally. The warranty rules are separate and apply when you sell.
Does my home and contents policy cover the build?
Usually not. Most home policies exclude or restrict cover while major building work is under way, and some void the policy if the home is unoccupied during a renovation. Tell your home insurer before work starts and arrange construction cover for the works.
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