Home Building Compensation Fund (HBCF) cover (formerly called ‘Home Warranty Insurance’) is needed if you’re a licensed builder or tradesperson in New South Wales and you’re about to undertake a home building project valued at $20,000 or more, including GST. As a builder, you are legally required to give proof of HBCF cover to the homeowner or developer you are working for before you start work or ask for a deposit or any other payment.
Home Building Compensation Fund cover acts as a safety net for homeowners in New South Wales so they don’t suffer financial loss as a result of incomplete and defective work carried out by a builder or tradesperson who disappears, dies, becomes insolvent or has their licence suspended. It’s a statutory product required by law.
Failure to take out HBCF cover is an offence under New South Wales law. Cover acts as a protection for the homeowner against financial loss suffered by them (and any subsequent owner, as long as the policy has not been exhausted by a prior claim) when a builder or tradesperson can’t complete contracted work or meet a valid claim for defective or unsatisfactory building work. This can happen when that person:
The cover also applies if the builder is trading through a business entity which ceases to exist or becomes insolvent.
You need to confirm eligibility before you can take out HBCF cover, which is offered by a single insurer operated by the NSW government – icare HBCF. Once icare has undertaken a risk assessment and determined your builder rating, you can then apply to obtain a Certificate of Insurance for a building project you intend to take on.
It’s important to note that you must provide this Certificate of Insurance to the homeowner or developer before you start work or request a deposit.
When applying for your HBCF certificate, you will be required to state the construction type for your project. Construction types are split into primary projects and secondary projects:
In NSW, builders can also apply for HBCF Certificates of Insurance online. Click below to find out more about the icare HBCF Self-Service Portal.
The HBCF Builder Self-Service Portal is a convenient alternative to applying for your Certificates of Insurance. The HIA Insurance Services team will still need to review and approve your application prior to binding your certificates.
You can now apply for your HBCF Certificate of Insurance for new jobs online and track your applications through the self-service portal.
You can also complete an open project by selecting the policy number of an open job and adding a completion date to close the job.
To gain access, you will need to appoint a self-service portal manager within your business and send us their full name, mobile number and email address to firstname.lastname@example.org. The portal manager can then appoint clerical users in your business to perform basic tasks, who will not have access to sensitive information about your business.
As your broker, we will arrange to have HBCF provide your self-service portal manager with their login details.
Visit the icare website to find out more and take a look at the portal.
Warranty Estimate & Fee Disclosure from 1 October 2022
The following calculator provides an estimated calculation of the fees and charges associated with your application for Home Warranty cover, in addition to premium, subject to any specified qualifications. We will confirm these fees and charges with you at time of application or at any time, on request.
By using this calculator, you accept the factors and multipliers that make up the premium and fee estimates are subject to change at any time, which may result in a different premium when you choose to take a cover. Please contact us on 1800 762 878 if you require any further information.