Whether you’re building a new home or renovating your current one, insurance is one of those things that can save your bacon if things go sideways. And trust us—on a building site, surprises happen.
Here’s a breakdown of what insurance cover is typically required, who’s responsible, and rough costs involved when building or renovating in New Zealand.
1. New Builds – What’s Needed?
When you’re starting from scratch, there are a few key insurance types that should be in place from the get-go.
Contract Works Insurance (a.k.a. Builders Risk Insurance)
- Covers: Damage to the building or site during construction – fire, theft, storm, accidental damage, etc.
- Who’s responsible: Usually the builder, but sometimes the owner if they’re managing the build or it’s a labour-only contract.
- Cost: Roughly $800–$2,000+, depending on the size/value of the build and length of time.
This is a must-have. Without it, you’re totally exposed if something like a fire, flood, or theft hits the site mid-build.
Public Liability Insurance
- Covers: Third-party property damage or injury caused by the building work (e.g., a tradie hits a water main or someone trips over materials).
- Who’s responsible: Builder/main contractor.
- Cost: Usually included in the builder’s overall operational cover – they’ll factor this into pricing.
Professional Indemnity (for Designers/Architects/
- Covers: Design errors or omissions leading to loss or rework.
- Who’s responsible: Your architect, designer, or engineer, if involved.
- Cost: Covered by them, not the client—but it’s worth checking they’re insured.
Homeowners’ Future House Insurance (Post-Build)
- You’ll need to arrange standard home insurance before you move in—once the CCC (Code Compliance Certificate) is issued and your home’s officially habitable.
2. Renovations – What’s Different?
Renos can be trickier, especially because you’re working around an existing structure.
Contract Works Insurance (again)
- Covers: Any damage caused during the renovation (to the work or sometimes to the existing structure).
- Who’s responsible: Often the homeowner, especially if the house is already insured. But talk to your insurer first—they might need to approve or amend the policy.
- Cost: Starts from $500–$1,500, depending on scope.
Important: Your regular home insurance won’t cover renovation work. You’ll need this separate policy, or a special extension added.
Home Insurance During Reno
- You’ll need to tell your home insurer before work starts. Some will refuse cover or limit your policy if structural changes are being made without proper protection in place.
Public Liability Insurance
- Still needed, and should be carried by the builder or any tradesperson on-site.
- If you’re DIYing or hiring unlicensed tradies, the liability may fall on you.
Who’s Responsible for What?
| Insurance Type | New Build | Renovation | Responsible Party |
|---|---|---|---|
| Contract Works | Yes | Yes | Usually builder or owner (check contract) |
| Public Liability | Yes | Yes | Builder or main contractor |
| Home Insurance | Starts post-build | Must be updated pre-reno | Homeowner |
| Professional Indemnity | If designers involved | If designers involved | Architect / Engineer |
| Builder’s Guarantee (Halo/NZCB) | Strongly recommended | Strongly recommended | Homeowner purchases through builder |
Bonus: Builder’s Guarantee (Like HALO or Master Build)
This isn’t technically insurance, but it’s a 10-year guarantee that protects you if the builder disappears, goes bust, or if major issues pop up post-completion.
- Covers: Loss of deposit, structural defects, non-completion
- Cost: Usually $500–$1,200, based on build value
- Who’s responsible: Homeowner, but it must be arranged through an approved builder (like NZCB or Master Builders)
Learn more: Halo Guarantee – NZCB
RB THOMAS LTD Tip
If you’re unsure who’s supposed to cover what, check your contract carefully. We recommend having clear wording about who’s responsible for arranging Contract Works Insurance and guarantees. And if you’re unsure, we’re happy to walk you through it before signing anything.
Quick Recap: Must-Have Cover
| Project Type | Contract Works | Public Liability | Home Insurance | Builder’s Guarantee |
|---|---|---|---|---|
| New Build |  Yes |
Yes |
Starts after CCC |
Highly recommended |
| Renovation | Yes |
Yes |
Must update |
Recommended |
Need help planning the insurance side of your project? Or want to know what cover we’ve got in place when we’re building for you? Just sing out—we’re here to make the whole process stress-free and above board.
