Contract Works Insurance provides cover for physical loss to the property during the build including materials and items specified in the contract. It also extends to covering loss during the maintenance period of the policy. Essentially the policy provides cover for fire, storm, natural disaster and all accidental damage during construction.

• The builder usually takes out the contract works on a new build whilst the homeowner should be responsible for taking it out on a renovation or any work on an existing structure.
• Regardless of who holds the policy, it’s important that both the builder and the homeowner have a copy of policy schedule/certificate prior to the work commencing.
• The cover usually ends when the building becomes occupied or at completion of the contract (Practical Completion Certificate issued), OR expiry date of the policy – whichever is earliest. Therefore, you may have to extend the policy if the job takes longer than anticipated. Also, if the homeowner moves in before work has been completed, the contract works cover may be void from then on. The homeowner should always arrange for the house and contents insurance to be in place when the contract works policy ends to ensure continuity of cover.