Build from Lock Up
Adam Weaver firstname.lastname@example.org
Building from Lock Up
Regularly we are asked about how an owner builder can take over a commenced project - whether because the original builder was contracted only until lock up or because the builder has been fired from job.
The answer in each case is the same - the owner builder should insure the works from the moment the old builder ceases responsibility for the work.
Existing structures are all buildings on the site that exist prior to starting a new owner builder insurance policy. So if you're in that position of taking over a commenced project, it's vitally important that you insure the partially completed works as Existing Structures, and not as a regular Contract Value.
Don't get caught out
If you don't take our advice, and try to insure the partially completed work in the Contract Value, you will find that you're not actually insured for what you intended.
All insurers treat the Contract Value as the value of works being completed during the insured period. Since the partially completed works ("lock up" or otherwise) were completed before the new insurance policy commenced, your insurer would be well within rights to deny a claim for damage to the old works.
You might get lucky, and they agree to cover the old works, but you might not. Why take a chance?
Get the right advice
Here at Allrisk we've been advising owner builders for over 10 years, and we've seen just about every mistake misinformed owner builders can make. Insuring your owner builder project correctly is usually cheaper than doing it incorrectly, and will save you a massive headache if something later goes wrong.
Insurance really is common sense, and it doesn't have to be difficult or costly to obtain. Our online quote form takes around 90 seconds to complete, and we'll instantly provide you with all of the information you require on e-mail. Answers to any question you might ask are in the quote documents, but if you get stuck we're always happy to help you out on the phone. 1300 255 747