1. Alternative building materials
Houses built with rammed earth,
straw bale, mud brick and other
alternative materials, occasionally even
such a wonderful idea as used car
tyres, are becoming ever more popular.
Nowadays not only do the majority of
people know about these construction
methods, but they could probably
even tell you a few of the benefits;
energy efficiency, cost advantage, noise
reduction, durability, aesthetic appeal,
lower environmental impact, etc.
And yet, for all of this, it is still
difficult to get insurance for these
projects. Why?
It really comes down to how well
the insurer understands what you are
actually going to be doing, and what
risks are involved. In order for insurers
to offer you cover they need to have
an intimate understanding of the
situation and the associated risks. If
they don’t, they generally will not offer
you insurance. In some cases, if they
understand the risks only moderately
well they may offer you insurance but
not at competitive prices and often
with some major exclusions to limit the
cover afforded by the policy. The ideal
situation is where they understand the
activities and the related risks extremely
well. In this case the insurer will offer
you reasonable cover at reasonable
prices. That’s the theory, but how is it
put into practice?
In recent years as the popularity
of alternative building materials has
increased dramatically, the demand has
also significantly increased for insuring
these projects. Insurers do tend to
eventually respond to these levels of
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demand, and then react by seeking the
degree of knowledge and understanding
that will allow them to offer competitive
products to meet the demands. The key
word there however was ‘eventually.’
So what’s the solution?
1. Educating the insurers. When they
perceive that the demand is high
enough they do seek to educate
themselves on the risks, but prior
to that we can present them with
information to help them get there
sooner.
2. Understand the reason there is a
problem in the first place. The key is
not to give up too quickly. If you are
not asking for the insurance then the |
perception is that there is not much
demand, and therefore the problem
never gets resolved.
There are other organisations
whose activities are also helping greatly
to educate the insurers. All around
Australia, companies are springing
up who exclusively provide guidance,
training and even direct assistance in
using alternative building materials.
With this kind of help, the risks
associated with an alternative build can
be reduced significantly.
There are benefits that come out
of this in relation to insurance. For
starters, if the owner builder is trained
in the best methods to do the job, they
are taking fewer risks. When insurers
become aware that there is method and
discipline involved in these projects
their perception subsequently improves.
The other long-term benefit is that
a well-guided or well-trained owner
builder ultimately has fewer insurance
claims, and over time that brings prices
of insurance down.
It’s important to point out that
while there are specific alternative
building method trainers, there are also
the general owner builder courses to
consider. In some states like NSW, QLD,
and ACT it is compulsory to do an
owner builder course before becoming
an owner builder. In the other states
these course are however also available,
with options both online and in person,
so please do consider doing a short
course, even if not absolutely required.
You should check with your ‘alternative
building materials’ expert whether they
also provide the general owner builder
training or only the specific skills for the
particular materials. Many will have a
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