Owner builder insurance products are a must for anyone deciding to build their home. Don't get lost with all the different protection and coverage offered by different providers, find out which products you need. So you want to build your own house and add that personal touch to your home? This is becoming increasingly popular and ensuring that you have the correct insurance coverage is vital. The key to a successful self-built project is to make sure that you are fully insured from the start.

The following insurance products are a MUST for any owner builder

1. Construction & Liability Insurance
Also known as contract works insurance or construction all risk insurance which is insurance protection for people renovating, building or extending their home. Construction insurance protects builders from most main risks that may be encountered during the construction and building process. This includes weather related damages, fire, issues with their workers or workmanship and more. (Consult your insurance broker to ensure what risks are protected).

The liability portion of this insurance is known as Public liability insurance. This protects the builder for their legal liability against injury or damage to third party property. As an owner builder you are responsible for the site safety and overseeing building works - without this cover you would be liable if anyone is injured at or near your building site. Although it is not mandatory to have construction and liability insurance cover it would be risky not to have it. Most local councils will however require you to have this cover prior to commencing any building work.

2. Personal accident or volunteer workers insurance coverage
Building and construction sites are listed as being amongst one of the more dangerous places to work. As an owner builder you can choose to assist your tradesmen and builders with the construction. If you are injured or incapacitated during construction and cannot attend your normal form of employment, having the right personal accident insurance cover will offer you the right protection.

3. Builders Warranty Insurance
Owner Builder Warranty Insurance mandatory insurance required by the Home Building Act 1989. Although it is mandatory, the policy is for benefit of the house purchaser and does not provide any cover to the actual home builder

This policy protects the subsequent owner from any defective work on the property if you as the owner builder have died, disappeared or become insolvent. Builders warranty insurance is mandatory insurance cover. It is essential to take out the insurance before any work is started as otherwise the project will be difficult to insure. Standard policies run for 12 months but, if the construction takes longer, extensions are usually available. This insurance is compulsory for all residential building works in excess of $12,000. If you build and sell your property within 6 years of its completion or renovation you will need to provide the with residential owner builder warranty insurance.

It is required by law to be taken out when selling within the statutory period - Statutory period for New South Wales and Victoria is 6years and 7 years in Western Australia. A builder who sells within 6 years of completion without any Insurance, or who fails to attach an insurance certificate to the Contract of Sale can be fined, amounts over $10,000. If a Contract of Sale has been entered into without insurance, the contract can be voided by the purchaser at any time before completion of the contract. It is therefore in your best interest to ensure you have the right advice when building you own home.