Statutory Requirements for Builders

Domestic Building or Home Warranty Insurance is the mechanism by which Australian state or territory governments establish a level of security for consumers of domestic building work. 

If you are a licenced builder, you have a statutory requirement to purchase Home Owners Warranty insurance for all projects over a certain value, depending what state you are building in. Whilst legislation differs from state to state, Domestic Building or Home Owners Warranty Insurance insures the homeowner in relation to defective workmanship; and/or failure to complete the building work as a result of death, disappearance or insolvency of the builder. 

If Home Warranty insurance is required, it must be purchased by the Builder at the time of entering into a building contract.

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