We get it—insurance is one of those things no one wants to think about until something goes wrong. But if you're about to build a new home or start a renovation, contract works insurance is something you need to understand.

We recently caught up with Cohen from Gerrards Insurance to go over the ins and outs of it, and here’s the simple version of what you need to know.

So, What Is Contract Works Insurance?

Think of contract works insurance as protection for your build while it’s under construction. It covers accidental damage or loss to the building site—from fire and theft, to storm damage or even vandalism—during your project.

If something major happens while your house is half-built or mid-renovation, this policy is what helps pay to fix it. Without it? You’re on the hook.

Do I Need It?

Short answer: yes.

If you’re doing a new build, the builder (like us at Zen Builders) usually arranges and holds this insurance policy.

If you’re doing a renovation or extension, it’s often the homeowner’s responsibility to organise contract works cover. This is where a lot of people get caught out—assuming your standard home insurance will cover it. Spoiler alert: it often doesn’t.

First Step: Call Your Home Insurer

Before taking out a new policy, contact your current home insurer. Some providers can extend your existing policy to include contract works (depending on the scope and value). It might save you money—and a headache later.

Real-Life Examples of Why It Matters

Imagine a fire starts on site halfway through your renovation—without contract works insurance, you could be left with a big repair bill and no recourse.
Or, let’s say a storm rips off a section of framing during construction—yep, contract works has you covered.
One of building sites has been broken into. The owners home insurance covered the glass replacement, their contract works insurance covered the materials that were stolen (We’re talking about all the bathroom fixtures!).

Tips from Zen Builders

Always confirm who's responsible for the insurance before your project starts—whether it's you or your builder.
Contact your insurer early to ask if they offer contract works extensions.
Don’t assume your home insurance covers renovations—most of the time it doesn’t.
Ask questions—we’re happy to help guide you through what you need and what to expect.

Want to Know More?

The team at Gerrard’s Insurance have an excellent deep dive on the topic if you want the nitty gritty: Read it here.

What is Contract Works Insurance… and Why Do You Need It?