1800 762 872

Home Warranty Insurance for Construction Projects


Home Warranty insurance – HIAIS specialises in delivering high quality warranty services to the residential building industry.

HIAIS has the largest and highly experienced Warranty insurance team in Australia and has over the long term demonstrated a deep competence in delivering high quality warranty services and effectively managing our client’s business requirements through changing legislative environments.

Our expert brokers manage the complex paperwork and insurance services on your behalf. We work with your business to deliver: 

  • Efficient 24-48 hour delivery of certificates*
  • Best business case for desired increase in profile limits for existing builders
  • Advocacy - we work for you in providing advice and we attend to appeals of the respective Underwriting Committees.
  • Eligibility submissions for new builders - we manage your Home Warranty submission application on your behalf to best achieve a speedy approval
* Provided you have an approved profile with the insurer, and subject to peak periods


Home Warranty Insurance - Cover and Requirements

Currently in each state in Australia (except Tasmania), the Government determines the policy terms of Home Warranty insurance, manages its administration and is the sole underwriter. This means when insurance claims arise, the Government pays out the claim to the home owner.

If you are a licenced building contractor dealing directly with home owners, and you undertake work that is required to be warranted in your state, then you must purchase home warranty insurance prior to commencement of the work.

What does Home Warranty cover?

Home Warranty insures the home owner (either the original owner or subsequent owners) against:

  • Non completion of the building contract
  • Failure of the builder to correct faults, which are deemed by law to be the builder's responsibility, for a nominated warranty period. These contingencies are poor workmanship, faulty design, and inadequate or unsuitable materials.

Legislation outlining the extent of Home Warranty insurance cover to the home owner varies across states, the following provides a brief comparison of the various state requirements:

NSW

  • Any building work over the amount of $20,000 requires Home Warranty insurance.
  • The insurance covers up to the amount of $340,000.
  • Period of Home Warranty cover is 6 years after completion of work. 

For more information visit the following NSW government websites: 

www.hbcf.nsw.gov.au

www.sira.nsw.gov.au
 
www.fairtrading.nsw.gov.au
 

VIC

  • Any building work over the amount of $16,000 requires Home Warranty insurance.
  • The insurance covers up to the amount of $300,000.
  • Period of Home Warranty cover is 6 years after completion of work (non-structural 2 years).

To access the VMIA BuildVic website to manage your DBI requirements, click below:

For more information visit www.dbi.vmia.vic.gov.au
 

WA

  • Any building work over the amount of $20,000 requires Home Warranty insurance.
  • The insurance covers up to the amount of $100,000.
  • Period of Home Warranty cover is 6 years after completion of work.

For more information visit www.commerce.wa.gov.au
 

SA

  • Any building work over the amount of $12,000 requires Home Warranty insurance.
  • The insurance covers up to the amount of $150,000.
  • Period of Home Warranty cover is 5 years after completion of work.

For more information visit www.cbs.sa.gov.au 
 

ACT

  • Any building work over the amount of $12,000 requires Home Warranty insurance.
  • The insurance covers up to the amount of $85,000.
  • Period of Home Warranty cover is 5 years after completion of work.

For more information visit www.actpla.act.gov.au 

NB: All information and limits noted in the above table are provided for comparison only and current as at the date of publication to the best of our knowledge. Full details in respect to the complete state requirements should be sought from your state government authority. HIAIS provides this information for general information purposes only.  It is not intended to be comprehensive, nor does it, or should it (under any circumstances) be construed as constituting legal advice. You should seek independent legal or other professional advice before acting or relying on any of the content of this information. HIAIS will not be responsible for any loss, damage, cost or expense you or anyone else incurs in reliance on or user of any information contained on this page.
 

Statutory warranties

The statutory warranties require the builder to perform work:

  • In accordance with the plans and specifications in the contract
  • In a proper manner
  • Using good and suitable materials
  • Using new materials unless otherwise stated
  • In accordance with laws
  • Within the time specified in the contract
  • So as to be fit to be occupied when completed; and
  • So as to live up to any result agreed it must achieve.
 

Home Warranty insurance for licensed builders and contractors

 

Obtaining eligibility

Whether seeking home warranty insurance for the first time or reviewing present arrangements, builders are required to present applications and documentation to obtain eligibility from an insurer.

The level of turnover sought can vary the process.

Pricing can only be determined once the insurer has assessed your application.

We recommend you talk to one of our experts who can assist you to choose the product best suited to your business. Ph: 1800 762 852.
 

Contact
1800 762 852