CGU Insurance has begun offering owner-builder insurance for NSW and Victorian residents.

Legislation requires homeowners to purchase insurance if their renovations cost more than $12,000, and if they plan to sell the house within six years.

CGU Home Warranty Manager Jacob Mamutil says the IAG subsidiary decided to offer the cover because of the “enormous growth in home renovations” and a growing number of homeowners choosing to become owner-builders.

He says the builders’ warranty insurance market – which has been riddled with problems since the collapse of HIH Insurance in 2001 – has benefitted from CGU providing “greater choice and more competitively priced premiums”.

“In the past, arranging owner-builder insurance could take up to a month, causing frustration for homeowners. We’ve removed the hassle by organising necessary building inspection on behalf of the customer,” he said.

CGU spokesman Chris Jackson told Sunrise Exchange News CGU plans to have regular applications processed in 12 business days, which is a big difference to the month or longer some brokers say they’ve had to wait in the past. He says fast-track applications will “have an even quicker turnaround of about five days”.

The cover will be progressively rolled out in other states and territories.