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Having been through several incarnations and name changes in numerous States, the purpose of Builder’s Warranty has not changed – it is a mandatory consumer protection product designed to protect home owners against incomplete or defective building work.

The parameters and providers vary between States, however the onus is on the builder to obtain eligibility and comply with legislation of the State(s) in which they operate. A summary of requirements is as follows:

Victoria

  • Called Domestic Building Insurance (DBI)
  • For Contracts over $16,000
  • Insured by the Victorian Managed Insurance Authority and administered by QBE
  • Covers Non Completion or Defective Works
  • Triggered by Death, Disappearance, Insolvency or Non Compliance with a Rectification Order within 30 days
  • Duration – Structural works 6 years or 2 years non structural from completion or termination of the contract

For more information visit the VMIA website

ELIGIBILITY APPLICATION FORM
CERTIFICATE OF INSURANCE APPLICATION

New South Wales

  • Called Home Building Compensation Fund (HBCF)
  • For Contracts over $20,000
  • Insured by Home Building Compensation Fund (HBCF) and administered by QBE & RBUA
  • Covers Non Completion or Defective Works
  • Triggered by Death, Disappearance, Insolvency or Non Compliance with a
  • Rectification Order within 30 days
  • Duration – Structural works 6 years or 2 years non structural from completion or termination of the contract

Important reforms are now in place and we encourage you to contact our Construction Team if you have any queries or concerns. Further information is available at http://www.sira.nsw.gov.au/home-building-compensation/reforms

South Australia

  • Called Building Indemnity Insurance
  • For Contracts over $12,000
  • Insured by QBE & RBUA
  • Covers Non Completion or Loss of Deposit
  • Triggered by Death, Disappearance, Insolvency
  • Duration – 5 years following Practical Completion

Western Australia

  • Called Home Indemnity Insurance
  • For Contracts over $20,000
  • Insured by QBE
  • Covers Non Completion or Loss of Deposit
  • Triggered by Death, Disappearance, Insolvency
  • Duration – 6 years following Practical Completion

Australian Capital Territory

  • Called Home Warranty Insurance
  • For Contracts over $12,000
  • Insured by QBE
  • Covers Non Completion or Loss of Deposit
  • Triggered by Death, Disappearance, Insolvency
  • Duration – Structural works 6 years or 2 years non structural from completion or termination of the contract

Queensland, Northern Territory & Tasmania

Queensland has a non-intermediated consumer protection product available through the State Government. More information is available at www.qbcc.qld.gov.au/home-warranty-insurance/overview
A Fidelity Fund is ran in the Northern Territory through Master Builders. More information is available at www.fidelityfundnt.com.au

Tasmania is exempt from a Building consumer protection program.

What is the insurance cover provided by a Builders Warranty insurance policy?

The policy is security for the builder’s client for loss of deposit, failure to start or finish a job and defective work on a completed job. The first step, should an incident occur, is to try and recover your costs directly from your builder however if they’ve died, disappeared or become insolvent that might not be possible and therefore you may be able to claim on the Builders Warranty policy covering your building contract.

Is Builders Warranty insurance a requirement in my state?

The rules vary from state to state, but in many places it’s a legal requirement for jobs above a certain dollar amount. Different states also give it different names, but the basic legal protections are the same.

Who purchases the Builders Warranty Insurance?

Builders Warranty is a legal requirement for the builder to operate and therefore the builder is the one to purchase the insurance.  No building work can be undertaken without it.  Builders must submit proof of insurance to the local council before a development application can be approved.

What happens if the owner sells the property after the completion of the building works?

If a property owner sells their house within six years of the completion of building work, domestic building insurance, whether provided by an owner-builder or a registered building practitioner, will cover the purchaser of that property.

Staff Profile

Peta_Kortum

Peta Kortum

Account Manager - VIC