Building Party must provide Insurance over and an Adjoining Property

In a recent case at the Supreme Court in Victoria, the judgment of Hronopoulos v Building Appeals Board 2022 found that there is a difference between third party liability insurance and property damage insurance.

Key points

Building parties must provide insurance that covers adjoining property owners and where the adjoining property owners can claim

Having third party insurance that covers the building party for any damage they cause to the adjoining property is not sufficient

Takeaway Points

Contractors undertaking protection works should make sure they have obtained the right type of insurance that allows the adjoining property owners to make a claim

The insurance policy must protect the adjoining property for 12 months following completion of the work
Insurance policies can be tricky.

If you aren’t sure whether your insurance is sufficient, contact us.