What is Builders Warranty Insurance?
Builders Warranty Insurance (also known as Home Warranty) provides insurance to Homeowners. It protects you from faulty workmanship and incomplete work if your builder dies, disappears or becomes insolvent and can’t pay off his debts.
Hopefully, none of these things happen to you or your builder. However, if you don’t have the right cover in place you could be left to pick up the pieces and cover the cost.
Who needs it?
If you own a home and are having work done to your home by a builder including renovations or an extension, you need Builders Warranty Insurance.
If you’re a licensed builder, you may also need Builders Warranty Insurance for your residential buildings to protect your client.
If you’re undergoing building work, it’s a legal requirement under State/Territory law to get Builders Warranty Insurance in all states in Australia, except Tasmania.
As a guide, you 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.
To find out more about Builders Warranty Insurance, contact one of our specialists today.