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:
For more information visit the VMIA website
New South Wales
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
Australian Capital Territory
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.
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.
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.
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.
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.