I am having some renovations done. Do I need to take out any insurance?

Residential building work over $5,000 will need to be insured through a private insurance company. If you enter a contract with a builder they will have to takeout necessary home building insurance through a private insurer as well. The insurance certificate and contract will need to be submitted with your building application to the council.

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This page: http://www.tumbashire.nsw.gov.au/faqs/pages/1356.html