Home Warranty Insurance


In most states of Australia the consumer of domestic building work must be protected against their builder's faulty workmanship and/or their failure to complete the job. The level of protection is established under legislation by each state government. Whilst state legislation differs they essentially all call for the protection of:-

 1.  Failure to rectify defective workmanship; and/or
 2.  Failure to complete the building work;
      arising from the death, disappearance or insolvency of the builder.


The time period during which this protection must be maintained varies from state to state, but generally is between 5 and 7 years from the date of completion. All states (excluding QLD) allow for the provision of this insurance by the private insurance market.

The insurance must be purchased by the Builder at the time they enter into a building contract. However, rather than leave it until that time it is strongly recommended that a builder obtain 'eligibility' with an insurer first. This is an assessment by the insurer of that builder to determine whether or not the insurer will issue any insurance or not to the builder. Some states demand a 'letter of eligibility' be procured by the builder from an insurer each year to support their continued registration or licensing.

All domestic building work above a certain value must be covered by Home Warranty insurance, this amount also varies by state, usually between $12,000 and $20,000.

A common misconception by many people is that when a builder is working for an 'Owner Builder' they are not required to purchase this insurance - this is incorrect. If the value of work - labour and materials - exceeds the specified amount then warranty insurance must be purchased.

This even applies when the Owner Builder purchases the materials - the builder must still include the cost of those materials when determining whether or not the work requires warranty insurance. Even when a builder is working on an 'hourly rate' they must, by law provide the Owner Builder with a reasonable estimate of the cost of their services for the work before they commence. If the cost of those services plus the cost of the materials they will be using exceeds the prescribed amount then warranty insurance is required.

A certain number of single trades are excluded from this requirement and it is wise to check the legislation to determine the application of it to your situation. If you are unsure, feel free to contact us to review your particular circumstances.

BRIC prides itself on its ability to undertake Eligibility Assessments quickly and efficiently and can let a builder know promptly if they are likely to succeed in obtaining Home Warranty insurance. Having been involved with this insurance since it was privatised in 1996 (Victoria) we have accumulated a wealth of experience in the field which cannot be matched by many others.

*Please note BRIC may charge a fee for the Eligibility Assessment. Please check with us to see if any fee will apply to your assessment prior to submitting.



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