Check insurance for two phases: construction and delivery, then the completed home. Do not assume one policy covers both. Ask the insurer or broker to confirm each stage in writing before manufacture or transport begins.
Building approval and insurance acceptance are different decisions. A compliant home still needs an insurer to accept the property, intended use and cover requested.
Phase 1: manufacture, delivery and installation
Your module may pass through several locations before you move in. Review factory work, storage, loading, road transport, unloading and installation separately. Foundations and other site works also need a clear insurance position.
Construction cover is often called contract works, construction works or builders risk insurance. Transit or storage protection may be included, limited or added separately. Read the policy wording and schedule rather than relying on the product name.
QBE and HIA Insurance Services describe contract works cover that can include materials in transit or storage. These are examples of available cover, not confirmation that your module, route or project is insured.
Confirm who holds each policy
The manufacturer, builder, installer or transport operator may hold different policies. A certificate of insurance does not by itself explain all limits and exclusions.
Ask which party is insured, which property is covered and whether you have an insured interest. Confirm who reports damage and makes a claim. If responsibilities change during the journey, check that cover continues through the change.
Discuss any gaps with the insurer or broker. Do not assume that a transport operator's liability insurance is the same as cover for the full replacement value of your module.
Questions to resolve before modules leave the factory
- Step 01When does cover start? Confirm whether it includes manufacture and storage before the module reaches the site.
- Step 02Does it cover the planned journey? Describe the module, transport method, route and any overseas freight.
- Step 03Are loading, unloading and lifting included? Ask about exclusions and limits at each handling stage.
- Step 04Are off-site storage and delivery delays covered? Confirm any location or duration restrictions.
- Step 05Are foundations and site works included? Check how they relate to the factory-built component.
- Step 06What is the insured value? Ask whether limits allow for repairs, replacement, recovery and further transport where covered.
- Step 07When does construction cover end? Check completion, handover and occupancy conditions against the planned home policy start date.
- Step 08What happens after damage? Confirm notification requirements, claim contacts, excesses and approval for repairs.
Give the insurer the actual scope, not just the phrase "modular home". Keep its written answers with the policy schedule and project contract.
Phase 2: the completed home
Once the home is installed, arrange cover for the completed building and, where needed, its contents. Confirm the start date before construction cover ends. Do not assume handover automatically activates a new policy.
Tell the insurer how the home will be used. Permanent residence, rental, short stays and relocatable use can raise different questions. Disclose the construction method, location and any information the insurer requests.
ASIC Moneysmart recommends comparing what policies cover and exclude, their limits and excesses. Consider rebuilding costs, not just the purchase price of the module. Ask how site-specific expenses affect the amount insured.
Check these boundaries carefully
Approval is not an insurance guarantee
Class 1a classification and compliance documents may help an insurer assess a home. They do not guarantee acceptance, a particular premium or cover for every event.
A building warranty is not property insurance
Builder obligations and state home warranty schemes are different from construction, transit and completed-home insurance. Read the warranty and defects guide for the distinction.
Legal reform does not amend your policy
A change to building law does not automatically change insurance terms. Ask the insurer to confirm the cover that applies to your project, regardless of general claims about modular construction becoming easier to insure.
Documents to give your insurer or broker
- 01The building and supply contracts, including who arranges transport and installation.
- 02The selected design, construction method and available compliance documents.
- 03The delivery route, lifting method and storage arrangements.
- 04The site location, intended use, project value and expected dates.
- 05Existing insurance certificates and any requirements imposed by the lender.
The responsibility-split guide helps organise the contractual scope. The delivery access checklist helps describe the journey and installation plan.
If damage occurs
Make the area safe and contact the relevant project parties and insurer promptly. Keep photographs, dates, transport records and correspondence where it is safe to collect them.
Follow the insurer's instructions before non-urgent repairs. Necessary emergency action should not wait for photography or a claim decision. Read the transport-damage response guide for the next checks.
Frequently asked questions
Does standard home insurance cover a modular home during construction?
Do not assume it does. Ask the insurer to confirm cover for manufacture, storage, transport and installation. Construction cover may include some stages, while transit or storage may need separate cover or an endorsement.
Is a completed modular home more expensive to insure than a site-built home?
There is no fixed answer. Premiums and acceptance depend on the insurer, property, location, use and policy. Compare quotes for the actual installed home rather than assuming a surcharge or standard treatment.
Does Class 1a approval guarantee insurance acceptance?
No. Building compliance and insurance acceptance are separate decisions. Give the insurer the requested construction and approval documents, and obtain confirmation of the cover and start date.
Do I need a specialist broker for modular home insurance?
A broker is not automatically required. One familiar with modular projects can help review manufacture, transit, storage and installation cover. Confirm the service scope, fees and advice provided before engaging a broker.
The bottom line
Map the insurance position from factory work to occupancy. Confirm the policy, insured parties, limits and dates for each stage. Keep the written answers and check that the completed-home policy starts when needed.
Start your Planning Assessment to organise the project brief. Ask an insurer or qualified broker for advice about a specific policy.
General information only, not personal financial, insurance or legal advice. No insurer or policy is recommended here. Cover depends on the actual wording, schedule, exclusions and circumstances. Last reviewed: 28 September 2026.
Sources and further reading
Requirements change and can be applied differently by site and local authority. Check the current official sources and confirm your project with the relevant council, certifier or qualified professional.