Are you a licensed builder carrying out domestic building work? Regardless of your experience, there may still be instances where your building works don’t go to plan or you find yourself unable to honour your building commitments and deliver the finished product. This can have significant implications for both you and your clients.
Builders Warranty Insurance (also known as Home Warranty Insurance) provides a safety net for homeowners to compensate for losses due to faulty workmanship and incomplete building work if their builder dies, disappears or becomes insolvent and can’t pay off their debts.
Do I need Builders Warranty Insurance?
A Builders Warranty insurance scheme is a legal requirement under State/Territory law, in all states except Tasmania. It applies to builders carrying out domestic building contracts where the contract value exceeds the threshold set by each state.
If you are a licensed builder, you may need Builders Warranty Insurance befor commencing work to comply with regulations and protect your clients against financial loss in case of non-completion or defective work due to your insolvency, death, or disappearance.
If you own a homeowner engaging a builder for construction, renovations, or an extension, Builders Warranty Insurance is required. This insurance ensures financial protection if the builder is unable to complete the project or rectify defects within the statutory warranty period.
State-specific thresholds and requirements vary, so it's important to check the regulations applicable to your project.
Request a QuoteState Requirements for Builders Warranty
As a guide, you will need to get cover when the value of your building works go above the below amount in various states:
- New South Wales, Western Australia, and the Australian Capital Territory: $20,000
- Victoria: $16,000
- Northern Territory and South Australia: $12,000
- Queensland: $3,300 ($1,100 for Hydraulic Services Design)
If it’s a requirement in your state to get Builders Warranty Insurance, your contractor should arrange it for you. But it’s best to get a copy of the paperwork proving it before you sign the contract to be sure you’re covered.
Your will need a copy of the builders warranty certificate from your builder to make a claim.
How Coverforce can help
At Coverforce, we understand the risks involved in any construction work. Our experienced insurance brokers and in-house claims team know the legal requirements in your state and will help to arrange the right Builders Warranty Insurance Program for you.
Contact your local Coverforce office today and experience the Coverforce difference for yourself.
Alternatively, you can simply fill out a Builders Warranty Insurance Quote form below and one of our insurance brokers will get in touch with you within one business day.
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