Home Warranty Insurance - Home Owners Warranty Insurance

Home Warranty insurance is the mechanism by which Australian state or territory governments establish a level of protection for consumers of domestic building work. If you are a licenced builder, it is likely you have a statutory requirement to purchase Home owners Warranty insurance for all but your smallest jobs. Whilst legislation specifics differ state to state, all seek to protect your customers from your:

1. Failure to rectify defective workmanship; and/or
2. Failure to complete the building work as a result of your death, disappearance or becoming insolvent.

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


Some states demand a Letter of Eligibility be obtained by the builder from an insurer to support their continued registration or licensing. This is an assessment by the insurer of a builder's solvency to help determine whether or not the insurer will issue any insurance or not to the builder.

BRIC prides itself on its ability to undertake Eligibility Assessments 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.


A common misconception 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 as the owner builder is considered a consumer.

If an owner builder purchases the materials required for the work, the licenced builder must still include the cost of those materials when determining whether or not the work requires Home Warranty insurance. If a builder is engaged for 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 home owners warranty insurance is required.

Learn more about builder warranty insurance here


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