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What is Home Warranty Insurance?
Home Warranty Insurance1 can provide cover to a homeowner (and any subsequent owner) in cases where contracted building work isn’t completed, or the builder is unable to fix defects. This could be due to the death, disappearance or insolvency of the builder, or, in some states, because the builder has failed to respond to a rectification order issued by a court.
If you undertake a project that is required by law to be warranted in your state or territory, you must purchase Home Warranty Insurance prior to commencement of the work.
Key Highlights
Home Warranty Insurance is compulsory (with some exceptions) for residential building over a particular value – and that value varies from state to state.
HIA Insurance Services (HIAIS) can help your business navigate the level of cover you need for your location and the building work you’re about to undertake.
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Protects consumers against defects and project non-completion for a period defined by state legislation.
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We manage your application to achieve a speedy approval.2
Expect efficient 24-48 hour delivery of your certificate.3
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HIAIS can help you manage changing legislative environments.
Why might I need Home Warranty Insurance?
If you’re undertaking domestic building work over a certain threshold (which varies across the states and territories), you should consider if Home Warranty Insurance is required. You may not legally be able to perform the work without it. This applies to both new residential builds and alterations and additions to existing residential property.
Home Warranty Insurance is unique in that government determines Home Warranty policy terms in each state and territory (except for Tasmania and the Northern Territory, where it’s not required by law). Because legislation differs across the states and territories, and is subject to change, construction businesses should engage an approved Home Warranty distributor who acts in their best interest to help protect their business.
HIA Insurance Services is one of the largest distributors of Home Warranty Insurance in Australia4 and can provide construction businesses with the advice they need before taking out cover for the next project.
What is covered?
Not only does Home Warranty Insurance go under several different names, eligibility criteria differs across the states and territories.
In New South Wales and Western Australia, home builders and renovators are required to take out Home Warranty Insurance for residential building contracts valued at $20,000 or more. That figure is $16,000 in Victoria and $12,000 in South Australia, the ACT and the Northern Territory.5
The level of cover provided by home warranty insurances also varies across the states, but the statutory warranties that apply to all residential building work are essentially the same. These warranties state that:
- the work will be performed with due care and skill
- the work will be in accordance with any plans and specifications set out in the contract
- all materials supplied will be suitable for the purpose for which they are to be used
- materials will be new, unless otherwise specified
For any information, contact the building authority in your state or territory:
- NSW - State Insurance Regulatory Authority (SIRA)
- VIC - Victorian Managed Insurance Authority (VMIA)
- QLD - Queensland Building and Construction Commission (QBCC)
- SA - Government of South Australia
- WA - Department of Mines, Industry Regulation and Safety
- ACT - Department of Environment, Planning and Sustainable Development
- NT - Land and Planning Services
Why HIA Insurance Services?
HIA Insurance Services (HIAIS) combines the construction industry expertise of the Housing Industry Association (HIA) with the risk and insurance knowledge of Aon to provide specialist products and advice to the residential construction industry.
We understand the unique risk exposures of Australian builders, tradies and subcontractors. HIA Insurance Services is one of the largest distributors5 of Home Warranty Insurance in Australia and can be relied on to arrange cost-effective insurance cover that best suits the needs of your construction business.
1Also known as Home Building Compensation (HBC) cover, Domestic Building Insurance (DBI), Building Indemnity Insurance (BII) and Home Indemnity Insurance (HII).
2In Victoria, HIAIS acts as a distributor/agent of the Victorian Managed Insurance Authority (VMIA) to provide DBI services and policies to builders (and does not act in the capacity as a broker or agent of the builder).
3Provided you have an approved profile with the insurer and subject to peak periods.
4In Victoria, HIAIS acts as a distributor/agent of the VMIA.
5As at 1 June 2021