Home warranty insurance
Home warranty insurance explained
Most residential building work done in Queensland valued over $3,300 (including labour and materials) must have home warranty insurance.
As part of the building process, the builder pays a premium to us to insure the construction. The amount is included as part of your contract, and is paid before work begins.
It may protect you where:
- a licensed builder does not complete the contracted residential construction work and you have terminated the contract
- the contractor fails to rectify defective work
- the building suffers from subsidence or settlement.
If we pay out on a claim, we pursue the builder to recover the claim amount.
Assistance under Queensland Home Warranty Scheme
Should your complaint involve residential construction work and is not able to be satisfactorily resolved through QBCC’s dispute resolution process, your application will be referred to the QBCC Insurance Services Division to assess whether you may be eligible for assistance under the Queensland Home Warranty Scheme. You are not required to lodge a separate form for this to occur.
Please note the following strict time limits apply for some claims:
- For structural defects you must lodge this complaint form within 3 months of noticing the defect
- For non-structural defects you must lodge this complaint form within 7 months of the completion date
Which insurance policy is applicable?
- Insurance Policy Conditions Edition 7 applies to contracts signed between 29 September 2006 and 30 June 2009
- Insurance Policy Conditions Edition 8 applies to contracts signed between 1 July 2009 and 27 October 2016
- Queensland Home Warranty Scheme Product Disclosure applies to contracts signed from 28 October 2016. For the full terms of cover see Queensland Building and Construction Commission Regulation 2003, Schedule 2C.
Make sure you have a contract
It’s important to have a signed contract with your builder. Apart from being a legal requirement, it ensures that you have access to the full range of benefits under the Home Warranty Scheme.
Types of work we insure
- construction of a new home, related roofed building (e.g a garage), townhouse or multiple unit dwelling (no more than 3 storeys)
- the extension, addition, alteration, renovation or repair of any of the above buildings
- replacement or refit of fixtures or fittings in a kitchen or bathroom
- work on a deck or verandah, attached to a residence
- building work that affects the structural integrity of the building.
- From 28 October 2016, in addition to the above, the following work is also covered:
- work on or in the home or related roofed building (e.g. painting)
- work on a deck or verandah attached to a related roofed building
- anything attached to the home or related roofed building
- any structure attached to the external part of a home or related roofed building which has no other supporting structure (e.g. awning, handrail)
- stairs or ramp which provide access, and are permanently attached to the home or related roofed building
- swimming pools
The examples below do not require insurance if done on their own:
- driveways, paths or roads
How long does a home warranty insurance policy last?
The work is covered for a period of 6 years 6 months from the date (whichever is earlier):
- the premium is paid
- a contract is entered, or
- work is commenced
The period of cover is extended where the work takes longer than 6 months to complete.
Checking for insurance cover
If you have signed a contract for residential construction work, we send you a notice of cover, which provides details of the work, the builder and the premium paid. You should get this before the work begins.
To check, contact us with the property details (e.g. address, lot and plan number).
Note: If you are a subsequent owner of the property, or didn’t contract with the builder for the work, complete the Insurance Search Request form (PDF).