Indemnity Insurance
(Only if estimated cost of Development exceeds $12,000)
Builders are required under the Building Work Contractors Act 1995 to take out a policy of building indemnity insurance to cover domestic building projects where the work costs over $12,000 and requires Council approval. Builders are prohibited from commencing building work until the insurance is in place and Councils will require the certificate of insurance to be lodged with them as part of the development approval process.
Indemnity Insurance is designed to protect home owners against losses caused by death, disappearance or insolvency of their Builder during the construction period or for a defined period of time after completion.