Statutory requirements for builders
Domestic building or home warranty insurance as it is also referred to, is the mechanism by which Australian state and territory governments establish a level of security for consumers of domestic building work.
If you are a licensed builder, you have a statutory requirement to purchase home owners warranty insurance for all projects of a certain value. Whilst legislation differs from state to state, domestic building or home owners warranty insurance insures the home owner in relation to defective workmanship; and/or failure to complete the building work because 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 a building contract.
