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How Much Does Contract Works Insurance Cost in NZ?
Contract works is priced on the project, so the cost scales with the build. Here's what determines the premium and how to make sure you're covered for the right amount.
What drives the price
The biggest factor is the contract value - the total cost to complete the works, including materials and labour. On top of that, insurers look at the type of work, the build duration, the site and its natural-hazard exposure, and any high-risk elements such as existing structures or work near water.
Cover can be arranged per project (a single build) or as an annual policy for builders running multiple jobs a year, which is usually more efficient if you're building continuously.
Getting the sum insured right
The contract works sum insured should reflect the full completed value of the project, not just the materials. Under-insuring the works can leave a shortfall if a near-complete build is damaged, so it pays to set the figure accurately from the start - a broker will help you get it right.