6 reasons why the smart Owner Builders have Latent Defects Insurance
You don’t have to be Einstein to understand that on building sites things can go wrong and especially you being an owner builder and not skilled in or present when the slab is poured, the frame and roof and built, the waterproofing done, correctly.
This is why Owner Builder Latent Structural Defect Insurance is vitally important for you, the Owner Builder as it protects your family for up to 10 years.
1. Peace of mind
For 10 years, if something happens that is outside of your control e.g. the mesh is incorrectly installed and causes the slab to crack, you are covered, not your fault but now you are protected.
2. Your Home and Contents Insurance policy will NOT cover you for a Structural Defect. In the event of the slab cracking, roof sagging etc., you do NOT have Insurance.
Eg. Page 50 of the AAMI Home Building Insurance Product Disclosure Statement says it all.
“We do NOT rectify Structural Faults”
Check out your policy, Home and Contents Insurers won’t cover Structural Defects.
3. Protection of you and your family’s financial future.
You are relying on tradies and suppliers to provide you with the products and expertise to build or renovate your home, which you intend to live in for a long time. Protection for an unforeseen Structural Defect is mandatory and if you sell.
The policy is transferrable for up to 10 years to the subsequent purchasers ensuring you will receive the best price for your home.
The biggest worry that Owner Builders have is whether the tradie is doing a ‘good’ job. This is especially true when the Owner Builder is totally relying on the trades and suppliers in the Structural part of the build.
6. Mortgage Approval
By having this policy in place ensures it is more comfortable for lender/financer to lend you the money to Owner Build.
Repairing a Structural Defect e.g. Slab, can be a total ‘pulldown’ or correcting a roof sagging could cost over $100,000.
Latent Defect Insurance gives you 10 years protection and peace of mind. If defects appear in the property structure, this insurance will cover the costs of repairing the defects and fixing any structural damage years after the project completion.
Why take the risk? When it is your home and you are living in it.
Not taking out Structural Defect Insurance is not an option.