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What do I need to know about Home Warranty insurance?


Home Warranty insurance is a type of cover that helps to protect homeowners from any unexpected problems or complications arising during a home build which could result in a financial loss. Potential risks include:

  • Building work not completed as stipulated in the contract
  • Faults arising which fall under the builder’s responsibility such as sub-standard workmanship or use of materials not fit for purpose
  • Disappearance or insolvency of the Builder

Failure to honour a building contract could be a result of loss of contact with the person or company contracted or as a result of the person or company declaring bankruptcy.

Different legislation requirements by state

Home Warranty insurance requirements in most instances are governed by state so the location of your project will determine the specific rules around what your cover looks like.

As an indicator, the states of Western Australia (WA) and New South Wales (NSW) require Home Warranty insurance, or Home Indemnity Insurance in WA, to be covered for any residential building work over the value of $20,000.

Victoria (VIC) legislation requires Home Warranty insurance for any residential work over the value of $16,000. The product is also commonly referred to in VIC as Domestic Building insurance or DBI.

South Australia (SA) and Australian Capital Territory (ACT) governments require Home Warranty insurance to be purchased for any residential work over the value of $12,000.

For building projects in Queensland (QLD), Home Warranty insurance can only be provided by the Queensland Building and Construction commission.

The Northern Territory (NT) and Tasmania (TAS) don’t currently have legislation to stipulate that Home Warranty, or Builders  Warranty insurance is mandatory.

In all instances, we recommend visiting the relevant state government website for further information. Details of these can be found on our Home Warranty page here.

You can also contact one of our specialist advisors who can help you with the process of acquiring the correct insurance for your project.

Why do I need Home Warranty insurance?

As mentioned, Home Warranty insurance is a legal requirement in several states for residential construction projects over a certain monetary value. In addition to this, it helps to protect the relevant stakeholders and provides peace of mind if something were to go wrong with your build or if for some reason it was unable to be completed.

The HIAIS team has a wealth of experience in providing bespoke insurance solutions for our clients. We can answer your questions and support you when undertaking your research before purchasing.

You can contact us via phone on 1800 762 878 on weekdays between the hours of 8.30am-5pm

Reach us via email at: au.hiais@aon.com

Alternatively you can visit our website for details of our offices local to you.

Contact
1800 762 872