Placing residential construction risks isn’t always cut and dry.
You’ve got a three-storey detached undergoing a full gut. The foundation’s intact, but everything else is new. The client calls it “a new build.” Is it?
Maybe. Maybe not.
The distinction between Builder’s Renovation and Course of Construction matters more than most brokers realize. Get it wrong, and you risk an underwriting decline—or worse, a denied claim.
Let’s break it down.
What Qualifies as a Course of Construction Project?
Course of Construction coverage is designed for ground-up new builds. That means:
- Bare land or teardown projects
- Foundations being poured from scratch
- No existing structure being reused
- Typically covered under building permits classified as “new construction”
The AU Gold Course of Construction program is a strong fit when nothing but the dirt is being carried forward. It provides coverage for materials, soft costs, transit, and off-site property from start to finish.
📄 Download the AU Gold COC Guide
What Counts as a Builder’s Renovation?
Once any part of the original structure is being retained—foundation, framing, or even a basement—it’s time to pivot.
The Builder’s Renovation program through AU Gold is tailored for:
- Structural renovations and additions
- Second-storey builds
- Post-loss repairs and remodelling
- Modular home rehabs
- Projects with partial demolition
This coverage is also a fit for higher-risk cosmetic flips or vacant renos that standard property markets won’t touch.
📄 Download the Builder’s Renovation Guide
Why It Matters: The Underwriting Perspective
Here’s what underwriters see when the wrong form is used:
- Increased exposure to hidden defects or legacy issues
- Unclear replacement values on pre-existing structures
- Ambiguous loss attribution (Was that water damage from old plumbing or new install?)
This creates claim complications and delays. Submitting the file under the right category upfront increases your chances of quick approval—and protects your client when it matters most.
Quick Test: Reno or COC?
| If You See… | Use This Program |
| Brand-new foundation, no structural reuse | Course of Construction |
| Existing structure being expanded | Builder’s Renovation |
| Cosmetic updates (kitchen, bath, floors) | Vacant Property or Standard Homeowner’s |
| Fire-damaged home being rebuilt on same slab | Builder’s Renovation |
| Infill lot with teardown and rebuild | Course of Construction |
Bonus Tip: Some Projects Shift Midway
What if your client starts with a reno—but the city requires full structural removal partway through? Or they demo more than planned?
Brokers should flag these shifts to underwriting immediately. In many cases, a mid-project conversion to COC coverage can be arranged—but only if you’re ahead of it.
Need Help with an Unclear File?
If you’re stuck between two programs—or not sure which applies—Jason Sweet can help. He’ll walk you through what underwriters are looking for and help you classify the file the right way.
Avoid the back-and-forth. Place it right the first time.
