Residential home construction - contract works insurance for home builders

RESIDENTIAL CONSTRUCTION

Residential Contract Works Insurance

Protect your home building projects from fire, storm, theft, and vandalism. Whether you're a residential builder or an owner-builder, get the right cover for your investment.

$100K+

Typical project values

$3K

Single project from

24h

Quote turnaround

WHAT IS IT?

Residential contract works insurance covers home construction projects - new builds, extensions, renovations - against physical damage during the build. It protects the structure and materials from fire, storm, theft, and vandalism until handover.

Based on our portfolio, residential projects we arrange cover for typically range from $100K granny flats to $1.6M custom builds. Whether you're an owner-builder doing a $140K extension or a licensed builder constructing a $580K home, the cover works the same way - protecting your investment from unexpected damage.

PROJECT TYPES

Residential Projects We Cover

From modest renovations to multi-million dollar custom homes, we arrange contract works cover for all types of residential construction.

New Home Builds

Custom homes, knockdown-rebuilds, and project homes from slab to handover.

$400K - $1.5M+ contract value

Extensions & Additions

Adding rooms, second storeys, granny flats, and garage conversions.

$150K - $500K contract value

Major Renovations

Kitchen/bathroom overhauls, structural changes, and whole-house renovations.

$80K - $400K contract value

Duplexes & Multi-Dwelling

Dual occupancy builds, townhouses, and small unit developments.

$600K - $2M+ contract value

What

A comprehensive residential contract works policy protects your project from common construction site risks.

01

Storm & Weather Damage

Heavy rain, wind, hail, and cyclone damage to exposed structures and materials. Common in QLD and NSW summer months.

Fire Damage

Accidental or arson fire damage to the construction work. Covers rebuild costs to return to pre-damage state.

Theft & Vandalism

Theft of building materials (copper wiring is a favourite target) and malicious damage by intruders.

Demolition & Cleanup

Costs to clear damaged materials so rebuilding can commence after an insured event.

02

Existing Structures Cover

Critical for renovations. Protects the original house during construction work. Most generic policies exclude this - we ensure it's included.

Principal's Property

Covers damage to the homeowner's existing belongings or property caused during construction works.

Renovation projects have unique risks. We check your scope of works to ensure you're not left with gaps in cover.

WHO NEEDS IT

Who Needs Residential Contract Works Cover?

If you're building, renovating, or developing residential property - you likely need contract works insurance.

01

Residential Builders

Licensed builders doing new homes, extensions, and renovations. Some insurers require minimum 4 years experience - newer builders may find limited options. Whether you do 2 or 20 projects per year, you need contract works cover for every build.

02

Owner-Builders

Managing your own build? Councils and lenders typically require contract works insurance before construction begins. Note: larger owner-builder projects (over $1M) often face limited insurer appetite, and some insurers decline if you're engaging a builder rather than managing trades directly.

03

Homeowners (During Renos)

Your home insurance usually excludes construction work (CGU caps renovations at $100K). If your builder's policy doesn't cover you adequately, consider arranging your own cover - especially for large projects.

04

Property Developers

Building spec homes or small developments? Annual policies covering multiple residential projects are more cost-effective than insuring each one separately. Most insurers require minimum turnover of $200K or more.

FROM OUR PORTFOLIO

Real Premium Examples

Actual premiums from recent placements, not estimates.

Owner-Builder NSW

Granny Flat

Single project cover for a smaller residential build

Project Value

$140K

Premium

~$3,200

Owner-Builder VIC

Log Home Build

Non-standard construction confirmed acceptable

Project Value

$580K

Premium

$3,400–$4,100

Licensed Builder VIC

Single → Annual

Renovations, extensions, and new builds

Single Project

$877

Annual

$1,713/yr

Licensed Builder AUS

High-Volume Builder

Multiple residential projects annually

Annual Revenue

$5M

Premium

$27,000/yr

Single Project Range

$3,000 – $10,700 ($100K–$1.6M value)

Annual Policy Range

$3,400 – $8,500 ($100K–$1M turnover)

POLICY OPTIONS

Single Project vs Annual Policy

Choose the policy structure that matches your workload and business model.

SINGLE PROJECT

One Build, One Policy

Cover for a specific project with a set duration and value.

Best For

  • Owner-builders doing one project
  • Builders doing 1-2 projects per year
  • Homeowners managing their own reno
From $3,000 per project
Learn more about single project cover →

Real example: A VIC residential builder started with a $877 single project policy, then upgraded to a $1,713 annual policy when their workload increased. The annual became better value once they were doing multiple projects per year. Not sure which is right for you? A quick call with our team can help determine the best option for your situation.

RESIDENTIAL FAQS

Common Questions About Residential Contract Works

For single residential projects, premiums typically range from $3,000 to $10,700 depending on project value ($100K to $1.6M). Annual policies for residential builders with $100K-$1M turnover generally cost $3,400-$8,500 per year. We recently quoted a $140K granny flat at ~$3,200 and a $580K owner-builder home at $3,400-$4,100. See our full cost guide for more detail.
Yes, especially for significant renovations. Your existing home insurance typically excludes construction work - CGU, for example, caps renovations at $100K. Contract works covers both the new work AND can include 'existing structures' cover to protect the original house during renovations - this extension is essential but often missed.
Not automatically. Check your building contract to see who is responsible for arranging cover. Even if your builder has contract works insurance, ask to be noted as an interested party on their policy. Some homeowners arrange their own cover for peace of mind, especially on large projects.
Single project cover is for one specific build with a set duration and value. Annual cover protects all projects in a 12-month period based on turnover. We've seen a VIC builder pay $877 for a single project, then upgrade to $1,713 annual - the annual becomes better value at 2+ projects per year.
Most councils and lenders require owner-builders to have contract works insurance before construction begins. It's typically a condition of owner-builder permits. Note that larger owner-builder projects (over $1M) often face limited insurer appetite, and if you're engaging a builder rather than managing trades directly, you may not qualify as a true owner-builder for insurance purposes.
Generally no - projects already commenced are typically uninsurable. Insurers across the board (including 360 UW and Mecon) will decline cover for works that have begun. This is one of the most common reasons we see quotes declined. Contact us before construction starts.
You pay for repairs out of pocket. Standard home insurance doesn't cover construction work, and your builder's liability insurance only covers their negligence, not storm or fire damage. If you do have cover, see our claims guide for how to lodge.
Marel Pencev - Managing Director

REVIEWED BY

Marel Pencev

Managing Director

Last updated: January 2026 (E-E-A-T verified)

Experience

5+ Years

Insurance Broking

Title

Senior Broker

Construction & Commercial

Role

Managing Director

Tank Insurance

Network

Steadfast Group

Australian Owned

Residential construction materials - contract works insurance

Protect Your Residential Project

Whether you're building your dream home or managing multiple residential projects, we'll find the right contract works cover for your situation.

Expert Review: 29/01/2026

Verified by Tank Insurance Brokers

Call Us Now +61 2 9000 1155