Discovered an interesting fact today. Even though our Builder is fully insured for the upcoming build, that coverage does not extend to public liability. So if, during construction, a worker was to injury themselves they would be covered. However, if someone was to wander onto the block and injure themselves, they would not be covered.
Given that presently the block is vacant and the build has not started, the situation is worse. It is effectively uninsured. Too risky a proposition for me.
I rang my current insurance provider to see if my old building insurance (for the demolished house) could remain in place to provide public liability. I was informed that this was not possible, as the policy was tied to the old structure, and that they did not offer vacant land liability insurance. I wondered if this perhaps was just a limitation of my current insurer.
So I contacted a number of other mainstream insurance providers and was surprised to discover the story was the same; this was a niche insurance product. I would have thought with the amount of ongoing construction that this kind of product would be in high demand. Anyway, I was given two options, either contact an insurance broker or use the Insurance Council of Australia’s Find An Insurer service.
I decided to try the Find and Insurer website. There I discovered a section on “Vacant Land Liability Insurance” that listed a number of providers. One of the them was a online service called LandCover. They provide up to $20,000,000 of public liability protection for vacant lots or lots undergoing construction. The application process was very straightforward; answer some questions about your circumstances (i.e. size of the land, existing structures/pools), enter some details and then make payment.
Premiums start at $175 for the average residential block and can range up to a few hundred depending on your circumstances. That amount provides coverage for up to 12 months.
I found the process quite simple and would recommend this product to others.