Definitely not the case in Australia e.g. https://www.gio.com.au/know-more/insuring-your-home/things-t...

Insurance for damage due to building works is separate and required to be carried by the principal contractor for work over $20,000.

Which is to say, if I don't check they actually hold a policy, the residential insurance is not going to pay out.

I am extremely skeptical you have interpreted those policies accurately. For example, the one above doesn't require anything of anyone renovating stuff: but it also just won't pay for any associated damages.