Unapproved Building Works Protection

Title Insurance can protect you if structures or renovations on your property were completed without the required council approvals, covering the legal costs and steps needed to resolve the issue and meet compliance.

Protect against the unknown risks from your property’s previous owners

When you purchase a home, it’s often difficult to know what renovations or additions may have been made by previous owners, especially if they were done without proper council approval. Unapproved building works can cause serious headaches down the line, such as fines, demolition orders or surprise costs to bring structures up to code. These risks are often not discovered until after settlement by the purchaser.

Does homeowners insurance cover unpermitted work? In most cases, homeowners insurance does not cover unpermitted or unapproved building work. Standard policies are designed to protect against sudden, accidental damage (like fire, theft or storms), but they typically exclude coverage for issues related to building code violations, illegal structures or works completed without proper council approval.

Does Title Insurance cover unpermitted work? First Title’s Title Insurance includes coverage that may cover unapproved building works completed prior to your ownership, helping cover the legal costs and rectification expenses if an issue arises. It’s a simple, one-off premium that can provide peace of mind from day one.

Why is coverage needed?

Unapproved building work can remain hidden for years until a council notice arrives unexpectedly, leaving homeowners with the stress, cost and legal burden of fixing something they never authorised. Having coverage in place helps prevent the shock and financial strain of discovering parts of your property lack council approvals. It can also save you from paying out of pocket, sometimes tens of thousands of dollars, to rectify or remove unapproved structures.

With studies suggesting that up to 30% of Australian properties have some form of unapproved building work, there’s a real chance your property could be affected, even if everything looks fine on the surface. Title Insurance can help with the process of bringing your property up to code, covering the legal expenses and rectification costs involved if you are ordered to rectify any unapproved building works.

Take a look at this 'Coverage for Unapproved Renovations' case study, where one policyholder had $100,000 in unapproved renovations covered under their First Title Title Insurance policy. It’s real protection for real-world risks.

What does it cover?

What's covered by Title Insurance? Unapproved building works protection under First Title’s Title Insurance can cover the unexpected costs that arise when local councils take action against unauthorised structures built before you purchased the property. If the council issues an order, the policy can help cover the cost of:

Surveyors to assess the structure.
Plan drawings needed for retrospective approvals.
Repairs or demolitions required to meet compliance.
Retrospective approval fees for unauthorised works.

Common examples of unapproved building works include:

Decks that weren’t submitted for approval.
Pergolas or outdoor structures added without permits.
Granny flats built outside zoning or approval conditions.
Carports erected without proper documentation.

Because Title Insurance can cover unapproved work, this protection helps you manage the financial and legal impact, offering peace of mind even years after you’ve moved in.

What does it not cover?

While First Title’s unapproved building works protection provides valuable cover, there are specific situations where it does not apply, including:

Known unapproved works: If the policyholder was aware of the unapproved building works before taking out the policy, those works are excluded from coverage.
Works done by the policyholder: Any unapproved renovations or structures added after settlement by the current owner are not covered.
Non-structural or cosmetic work: Alterations such as paint jobs, cabinetry updates, or other purely aesthetic changes are not considered structural and are excluded from cover.

It's also important to note that all claims are subject to First Title’s assessment. Some works or situations may fall outside the scope of the policy depending on the specifics of the case, so reviewing your policy details and speaking with a representative is always recommended. The content provided is general in nature and does not constitute advice. You should assess whether this product suits your needs before making a decision.

For comprehensive information on First Title’s policies and coverages, please see our Important Information and Policy Wording documents. Caps and exclusions apply.

See how First Title has helped our policyholders with unapproved building works

Garage and Carport Without Permits
When our policyholder lodged a development application with council, they discovered that the existing garage and carport were built without a permit.
Total cost of claim: $100,000

Backyard Shed Without Final Approval
After settling their property, our policyholder in QLD was made aware that their backyard shed never received final building approval. Council issued a notice to rectify.
Total cost of claim: $30,000

Illegal Verandas and Shed
Four years after purchasing, our policyholder received a notice from council stating two large verandas and a shed were illegal.
Total cost of claim: $48,000

Get protected against unapproved building works now

With over 30 years of experience in the Australian property market, First Title is a trusted provider of Title Insurance, helping buyers and owners manage the hidden risks that can come with property ownership, including unapproved building works. Our one-time premium policy protects you from the financial effects of structures that were built without council approval, covering costs like legal fees, rectification work and retrospective compliance.

We deliver expert support backed by a national network and deep local knowledge. We’re committed to making complex property risks easier to manage, giving you peace of mind from day one.

Start your unapproved building works protection now. Contact us for a quote, claim or expert advice.