Contract Works Insurance for Multi-Unit & Townhouse Projects

It's the cover that protects the physical construction of a multi-dwelling project - townhouses, villas, duplexes or a small apartment block - while it's being built. It covers the works, materials on site and usually the existing structures and removal of debris, against events like fire, storm, theft and accidental damage during the build. Because several dwellings sit under one contract, the sum insured and policy limits are set against the total contract value, not a single home. It runs from the start of works through to practical completion and handover.

Specialist construction underwriters look at the total contract value, the build duration, the number of dwellings and the construction type. They also weigh the site context - demolition, existing or neighbouring structures on infill blocks, excavation depth, and whether the project is staged. A longer programme and a higher contract value generally mean a higher premium, because there's more value on site for longer. We present the full project to the market so the rating reflects the actual job rather than a generic residential assumption.

Lenders funding a development commonly require contract works insurance to be in place before drawdown, and often want their interest noted on the policy. Off-the-plan and presale arrangements can add their own insurance conditions too. Send us the financier's requirements and we'll arrange cover that meets them and issue a certificate of currency you can hand to the lender.

Contract works cover is designed for the construction phase. Once the development reaches practical completion and the units are handed over, occupied or titled, the building moves onto property cover - typically an owners corporation policy. For a completed multi-unit or townhouse development, that's usually Block of Units insurance or an equivalent strata building policy. We can help you line up that transition so there's no gap between the build period ending and the owner's property cover starting.

It can. On townhouse and apartment projects, some dwellings are often finished while others are still under construction. A well-structured policy covers works in progress alongside completed-but-not-yet-handed-over stages on the same site through to the end of the build. We make sure the policy structure and period match how the project is actually being delivered.

It depends on the total contract value, the build duration, construction type and site risk - so pricing varies project by project. Rather than quote a figure that won't fit your job, we take the full development to the specialist construction market and come back with terms. For published ranges across single-project and annual cover, see our contract works insurance cost guide.