What is Public Liability insurance?

This covers the builder or tradesperson if anyone is injured or should there be any damage to your home, neighbouring properties, or third parties as a result of the building work.

The builder's public liability insurance should cover these events, preventing you from holding liability for resulting damages.

Policy coverage can vary widely so (again) it pays to read it.

His policy might not cover you or your guests or your mother-in-law 'just popping over and having a look'.

If your builder or tradesperson does not have this type of insurance, you could be liable because you own the property.

The builder should carry public liability insurance with a coverage level of at least $5 million but $10 million is becoming the norm.

If you plan on carrying out or contributing any of your own renovations, then you would want to obtain public liability insurance as well.

Do not assume your home owners insurance covers your building or renovation work.