Major renovation - Insurance?

I'm expecting to have an offer accepted on a property later today, which will be the start of my first experience with a small property development.

The block has an existing post-war house in need of major renovations (~$100k), with potential for splitting the block and building a townhouse out the back.

What I'm trying to determine is what type of insurance I need to cover the settlement period (30 days) + however long it sits vacant, plus the renovation period (1-2 months).

The few insurance providers I've spoken to will cover an unoccupied house only if it's cosmetic renovations. But as soon as I mention the work that's needed (new roof, new bathroom & kitchen), they've turned me away.

So for those who have gone through something similar before, what type of insurance should I be asking for, and who can provide it?

Cheers
Jake

In Queensland, you need a builder's licence to perform works that extensive, and the builder buys insurance.

contractors all risk policy through your broker

Perp said:

In Queensland, you need a builder's licence to perform works that extensive, and the builder buys insurance.

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So the builder's insurance will cover the property for project-related damage, but do I need something else for basic home insurance? E.g. storm or flood damage?

aussieshorter said:

So the builder's insurance will cover the property for project-related damage, but do I need something else for basic home insurance? E.g. storm or flood damage?

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Check with your builder, but no, I don't believe so. When there is a build underway, the builder has an exclusive contractual licence to enter the premises, and in fact, the owner is only allowed on the premises with the builder's permission. The builder takes on all the privileges and risks (but not costs) that would normally be attributable to the owner for the duration of their possession.

Be careful though. Our son's house has been partially demolished due to termite damage. Some floorboards missing (not big holes, just one board here and there) and the bathrooms were demolished when the asbestos was removed.

They told me last night that while their insurer was covering them from when they contracted to purchase it, that policy no longer completely covers them as it is considered a "renovation project". They have not started the renovation, only the demolition done by a licenced asbestos contractor and some internal walls that have come down and a builder who installed a beam where the walls came out.

So, my understanding (as discussed just last night) is that right now, they have building insurance with a high excess due to not living there, but no third party liability insurance. This is scary, and they will be seeing what they can do to protect themselves.

wylie said:

So, my understanding (as discussed just last night) is that right now, they have building insurance with a high excess due to not living there, but no third party liability insurance. This is scary, and they will be seeing what they can do to protect themselves.

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??
Can't the owner or builder just buy some insurance then?

miss green eyes said:

??
Can't the owner or builder just buy some insurance then?

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They are the owners and have insurance they bought when it was a liveable house. Right now, it has no bathrooms and several floorboards are missing. They apparently still have insurance, higher excess as they don't live there, but that insurance (so they tell me) doesn't cover them for public liability insurance.

They don't have a builder. They are having plans drawn up now. The builder who installed one beam did that little job for them but is not their "builder". They are in a bit of limbo but I will be pushing for them to ensure they get insurance to cover their public liability needs.

miss green eyes said:

??
Can't the owner or builder just buy some insurance then?

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Having been through this myself recently and tried brokers all over Australia, it's extremely challenging to get public liability on an unoccupied house. The builders, however, have access to specialty policies that make it easy for them. Not so much for a homeowner.