What is Home Warranty Insurance?
Home Warranty Insurance offers protection to current and future homeowners. It is for situations where the agreed-upon construction work remains incomplete, or when the builder is incapable of resolving any defects.
A claim might be triggered if the builder:
- dies
- disappears (goes missing)
- becomes insolvent, or
- fails to comply with a tribunal issued money order to rectify an issue.
Note: Insurance triggers differ from state to state. Ensure you check the applicable policy wording to check the level of cover applicable.
Home Warranty Insurance will also cover the homeowner for loss of deposit if a claim is triggered.
It can be used to cover incomplete or defective works on domestic building work and is required in most states and territories in Australia. Depending on the state, cover can last up to six years from completion or termination of the domestic building work. Usually this is two years for non-structural defects and six years for structural defects.
However, cover is not guaranteed, it is only provided for residential building work, and a claim can only be made if one of the specific events has been triggered. This includes the reasons listed above..
If you’re a licensed builder or contractor, you’re required by law to arrange home warranty insurance for certain residential building work in the relevant state for each project.
In Queensland, the home warranty insurance scheme is managed by the Queensland Building and Construction Commission (QBCC). Require Queensland Home Warranty Insurance? Visit the QBCC website.
We no longer provide Victorian Home Warranty Insurance (formally known as Domestic Building Insurance) Seeking support for Victorian Home Warranty Insurance? Reach out to Master Builders Insurance Brokers in Victoria who will be able to assist.
The process for New South Wales (NSW) Home Warranty Insurance (HBCF) has recently changed. Seeking Home Building Compensation for the first time in NSW? Visit the icare HBCF website. Once there, create an account and apply for eligibility with icare HBCF directly.