Contract Works Insurance

Get an instant quote and arrange cover for your residential or light commercial construction project.

Projects Covered

New Dwellings

Including stand alone homes, sleepouts, garages, townhouses and multi unit developments

Residential Alterations & Additions

Such as substantial renovations and extensions

Light Commercial

New commercial buildings, retail and office fit outs

Rural Buildings

Including pole sheds and other outbuildings

What Is It?

Whether you’re building new or doing an alteration, extension or renovation, both your contract and the homeowner’s lender will require that contract works insurance (also known as builder risk insurance) is arranged to cover the work.  The policy provides cover for sudden and accidental loss or damage to the works specified in the contract.


Contract works insurance is defined as indemnifying the policyholder(s) for sudden, unforeseen and unintended physical damage or loss to the contract works during the period of insurance. This typically excludes faulty workmanship but can be extended to include damage caused by natural hazards, such as earthquakes.

Claim Examples

A new timber weatherboard home is nearing completion when a power surge sparks a fire that causes substantial damage.
$15,000 of custom made windows were delivered to site at 4pm, ready to be fitted the following morning.  When the builder arrived on site they were all missing.
Heavy rain causes flooding that results in damage to the works.
Vandals break into the property, smashing walls, breaking windows and causing thousands of dollars of damage.

Policy Key Facts

This is meant as a summary of the most important items in the policy.  For a complete understanding of what it does and doesn’t cover you should always read the full policy wording.

Sudden, unforeseen and unintentional physical loss or damage. This could include:

  • Fire
  • Theft & burglary
  • Accidental damage
  • Storm and flood
  • Subsidence
  • Natural hazards such as earthquake or tsunami (as an optional extension)
  • Damage caused by faulty workmanship or defective design and materials
  • Any existing structure (unless added separately)
  • Consequential loss
  • Contractors tools & equipment
  • Gradual damage
  • Marring or scratching
  • Damage while cleaning
  • An excess is payable for each claim
  • The cover ends on the earlier of the expiry date on the policy, practical completion or when the owners start to occupy the works

Value of all Insured Projects

Number of Projects Insured

Builtin’s Added Benefits

Builtin have negotiated a set of preferential terms and benefits for our clients. These are in addition to the standard policy wording, or would normally come at an additional cost.


There can sometimes be a gap in cover between practical completion and when a CCC is issued (which is usually required before house insurance can be obtained). Completion Cover extends the contract works insurance to cover this gap. Builtin’s policy automatically includes 30 days Completion Cover for free, and it can be extended for a cost. This benefit excludes spec homes, but cover can be added for a cost.


Builtin’s policy automatically covers loss or damage to hired or borrowed plant, including portable toilets, scaffolding and formwork, as long as it is not otherwise insured. The limit is $10,000. It doesn’t cover subcontractors’ equipment or theft without forced entry.


Builtin’s policy covers temporary buildings including portable toilets.


Contract works insurance normally ends once the property is occupied. Builtin’s policy is automatically extended to cover occupied dwellings, for example if the owners move in early. It’s important to note that their contents as well as damage caused by the occupants are not insured, only contract works-related perils remain covered.

How Much Does It Cost?

The cost of cover varies greatly, as it depends on the contract value, your location, the construction period and the coverage extensions that you require. The premium may also include levies that we’re required to collect on behalf of the government, such as the Fire & Emergency Levy.

Terms & Conditions

View our current policy wordings. Existing policyholders may be on a previous version. Specific endorsements to this wording will be individually noted on your policy schedule. In some cases we may recommend an alternative insurer, if so we’ll send you their policy terms & conditions.

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