Works Already Started? The Contract Works Evidence You Need

The practical answer: you may be able to arrange contract works insurance after construction has started, but it is a different underwriting problem from cover arranged before commencement. The underwriter is being asked to insure a partly completed asset with an existing condition they did not observe from day one.

Expect questions. Lots of them. Project stage, photos, certifications, contracts, incidents, security and the reason cover was late all become central.

Key takeaways

• The further a project has progressed, the more evidence an underwriter usually needs.
• A clear reason for late placement is essential; “we forgot” still needs to be stated honestly.
• Known damage, defects, water ingress, theft or other incidents must be disclosed.
• Owner-builder and licensed-builder arrangements can require different documents.
• Home building compensation insurance is not the same as contract works insurance.

Why is cover harder once work has started?

At day zero, the insurer can assess the plans, contract value, parties and site before physical work begins. Mid-project, it also has to work out what already exists and whether anything has gone wrong.

The questions become:

• What percentage is complete?
• Who has controlled the site to date?
• Are approvals and inspections up to date?
• Has there been any damage, defect, delay or circumstance that could lead to loss?
• What remains to be built?
• Why was cover not arranged before commencement, or why did previous cover lapse?

No document guarantees a quote. But without reliable answers, the underwriter cannot separate a well-run project with an administrative gap from a distressed project seeking insurance after a problem.

What evidence is needed at each project stage?

Project stage	What the underwriter is trying to establish	Evidence to prepare
Not started	Scope, parties, values and planned controls	Signed contract, plans, approvals, budget, builder details, site protections
Early stage	What work exists and whether the site is sound	Dated photos, excavation/foundation evidence, inspection records, updated cost-to-complete
Mid stage	Quality and condition of completed structure and services	Progress claim, engineer/certifier records, photos by area, variation register, incident declaration
Near completion	Remaining exposure, testing, defects and handover timing	Defects list, commissioning records, practical completion forecast, occupancy/approval status
Work paused or prior cover lapsed	Reason for the interruption and current risk controls	Lapse explanation, prior schedule, site security, weatherproofing, claims/loss record, restart plan

Percentages are a useful prompt, not a substitute for the real stage. Two projects at 50% can have completely different exposures.

What belongs in a started-works evidence pack?

Tank’s practical checklist is built from the information we see requested on mid-project referrals. Treat it as a starting pack; a particular market may ask for more.

Project and contract documents

• signed building contract and all material variations;
• original contract value and current forecast final value;
• scope of works, plans and specifications;
• start date, expected completion date and current percentage complete;
• details of the principal, builder, subcontractors and consultants; and
• payment/progress claim history.

Current condition evidence

• recent dated photos covering the whole site;
• independent inspection, engineer or certifier reports;
• approvals and certificates issued to date;
• defects list and rectification status;
• details of temporary works, waterproofing and weather protection; and
• site security, fencing, alarms and fire controls.

Insurance and incident history

• previous policy schedule and expiry/cancellation details, if any;
• reason cover was not in place from commencement;
• full loss and incident declaration;
• details of damage, theft, water ingress, defects or complaints; and
• any circumstances already notified to another insurer.

Don’t curate the photos to show only the finished areas. The point is to let the underwriter understand the existing condition.

Does the route change for owner-builders?

It can. An owner-builder may be responsible for coordinating trades, materials, approvals and site safety in a way that differs from a single licensed builder contract.

NSW Fair Trading’s owner-builder guidance explains those responsibilities and separately discusses contract works, public liability, workers compensation and home building compensation. If you are an owner-builder, prepare:

• the owner-builder permit;
• trade contracts and licences;
• certificates of each contractor’s insurance;
• supervision and inspection arrangements;
• a detailed cost schedule; and
• evidence of site controls.

For a standard renovation context, also read our guide to insurance for renovation projects.

Is home building compensation the same cover?

No. This distinction matters.

In NSW, home building compensation is a statutory scheme for eligible residential building work. SIRA’s current insurance obligations for residential building work explain who must arrange it and when.

Contract works insurance is a separate policy commonly used for physical loss or damage to the works, materials and related project exposures, subject to the wording. One does not automatically replace the other.

How should you explain late placement?

Keep it factual:

1. When should cover have started?
2. Why was it not arranged then?
3. Was any other policy believed to apply?
4. Has anything happened since work began?
5. What controls and inspections have been in place?
6. What is the exact condition today?

If a previous policy lapsed, attach it and explain the timeline. If the builder changed, explain why and provide the handover documents. If a defect exists, disclose it and show the rectification plan.

Pre-contractual obligations differ by contract type. Under the Insurance Contracts Act 1984 (Cth), consumer insurance contracts attract a duty to take reasonable care not to make a misrepresentation, while other contracts attract a duty of disclosure. Answer the insurer’s questions honestly and completely, and ask which duty applies to the proposed policy.

What has Tank observed?

If a started-works file describes the project only as a rough percentage, assessment may take longer because the underwriter cannot connect that number to the site’s actual condition. A stronger pack connects the stated stage to dated photos, inspections, progress claims and cost-to-complete.

The practical point is simple: no single document wins cover. A consistent, dated pack gives the underwriter a much clearer picture of the condition being taken on.

Frequently asked questions

Can I insure a half-built house?

Possibly, subject to the project, current condition and market appetite. Expect a detailed referral and no guarantee of terms.

What if my builder’s cover lapsed?

Provide the old schedule, lapse date, reason, current stage, incident history and evidence of the site’s condition. A gap can materially narrow the market.

Will a certifier’s sign-off guarantee cover?

No. It can be useful evidence, but the underwriter considers the complete project, parties, condition and policy terms.

Are known defects covered once a new policy starts?

Do not assume so. Known defects or damage must be disclosed, and pre-existing conditions and defective work can be excluded or restricted.

Build the pack before approaching the market

Use the checklist above, name files clearly and send Tank the project stage, documents and late-placement explanation. We’ll review whether a started works insurance approach is practical.

General information only. Cover is subject to underwriting and policy terms. This article does not provide building, legal or financial advice and does not guarantee insurance availability.