What insurances do you need before your home build completes?

You’ve chosen your block, picked out your dream home design and you’re starting to imagine family get-togethers in your new alfresco. There’s no doubt it’s an exciting time, and the finish line is in sight.

But before the day of the completion of your new home build, it’s essential to have certain insurances in place. While this may be one of the least exciting aspects of building a new home, making sure you’re properly covered before you move in provides the peace of mind that your possessions and home will be well-protected.

Here’s a plain-English guide to the home builder insurance cover you’ll need during the building journey and why insurance for building a house matters.

What is Building Insurance?

Before your builder even lifts a hammer, they must have Home Building Compensation Fund (HBCF) cover in place. If you’ve never heard of it before, this was previously known as Home Warranty Insurance. It’s a legal requirement for all licensed builders and trades in NSW working on residential projects valued at $20,000 or more (including GST).

At Eden Brae, we’ll show you proof of our HBCF cover before you sign your building contract to make the build insurance process easy. 

What HBCF Covers:

HBCF exists to protect you and any future owner of your home from financial loss if something goes wrong and the builder can’t fix it due to insolvency, death, disappearance or refusal to comply with a rectification order. It also covers incomplete or defective building work for up to six years after construction.

Our Tip:

Ask to see the Certificate of Insurance before signing the contract. A reputable builder will have no problem showing it to you upfront.

As the Build Nears Completion: Home Insurance

Once your home is structurally complete and approaching the final handover, it’s time to take out your own Home Insurance policy. In most cases, you’ll want this in place by the day of handover, when the home officially becomes yours.

Home insurance covers the physical structure of the property. That means protection against events like:

• Fire
• Storm or hail damage
• Floods (depending on policy)
• Vandalism
• Burst pipes or water damage

It also typically covers things like temporary accommodation if you’re forced to leave your home due to an insured event, something no one ever actively plans for but is very glad to have if needed.

Our Tip:

Compare at least three insurers. Focus on more than just the premium cost and look closely at what's covered and what's excluded. Ask about bundling your home insurance with contents insurance to save a bit of money on premiums.

When the Furniture Starts Arriving: Contents Insurance

This is where things get personal. Contents insurance is what protects your belongings, such as furniture, appliances, clothing, electronics, jewellery and even sentimental items like heirlooms or instruments.

The house will be secure, but it may still be damaged or robbed, so it’s beneficial to insure contents from the lock-up stage, especially if you start bringing things in early, like your new lounge or fridge. 

What’s Generally Included in Contents Insurance?

Policies vary, but you’re generally covered for:

• Theft or burglary
• Fire or storm damage
• Accidental breakage (depending on the policy)
• Loss of valuable items (within limits)

Our Tip:

Create a simple inventory of valuable items before moving them in. It helps you choose the right level of coverage and makes things easier if you ever need to claim. Bundling home and contents insurance can even score you a discount.

Optional, But Worth Knowing: Builders’ Risk Insurance

While it’s usually the builder’s responsibility, it’s good to know that builders’ risk insurance exists. Also called “Contract Works Insurance,” it covers the builder’s materials, tools and liability while your home is being constructed. This helps cover incidents such as fire, theft or storm damage during the build.

At Eden Brae, we take out the necessary home construction insurance, but not all builders do, and some may offer limited policies. It’s a good idea to ask early on what’s covered by insurance for building a house.

Don’t Forget: Mortgage Lenders Often Require Insurance at Handover

If you’re financing your home with a mortgage, your lender will likely require proof of home insurance before releasing the final loan payment. This is another reason not to leave it to the last minute.

Lenders want to know that the home (their security) is protected before you officially take ownership. If you’re not sure what level of Lenders Insurance cover they need, give your broker or bank a quick call early in the build so you’re not caught off guard.

You can learn more about financing your home here.

Real Life Example

Let's say you've finally built your house in the Hunter region, and handover is imminent. You've organised the movers, your appliances are being installed and you're dreaming of that first BBQ out the back. Then, a storm hits and a tree falls on your roof, just days from moving in.

Without home insurance in place, you’re the one footing the bill for repairs. 

With it? Your insurer handles it all, and you can still settle on time (or get help with temporary accommodation if needed). 

It’s a worst-case scenario, but it shows exactly why these policies exist.

What Happens If You Skip Build Insurance?

It’s easy to think, “I’ll get around to it after the move”, but this is one area where procrastination can seriously cost you.

Without the right cover:

• You could be left with major repair bills before you even unpack a box
• Your loan may be delayed
• Your contents could be stolen or damaged and not replaced
• You may not be covered if something goes wrong with the build down the line

Home builder insurance isn’t just a checkbox; it’s your safety net. And with so much time, love and money going into your dream home, it’s worth making sure you’ve got it right.

Building With Confidence

When you build with Eden Brae Homes, you don’t have to chase paperwork or wonder what’s covered. From our end, we’ll ensure HBCF insurance is organised and clearly documented. And when handover time comes, we’ll help guide you through what you need to do to protect your new investment, including your home and contents cover.