While most residential building projects are completed without major issues, unexpected problems can and do occur. Defective work, incomplete projects, subsidence or a builder becoming insolvent can create significant financial and emotional stress for home owners.
That's where the Queensland Home Warranty Scheme (QHWS) steps in.
Administered by the Queensland Building and Construction Commission (QBCC), the scheme provides eligible home owners with financial protection when building projects don't go to plan, helping them recover from setbacks and move forward with confidence.
The value of that protection was highlighted in the 2025-26 financial year, with new QBCC figures revealing $55.7 million in approved claims was paid to eligible home owners.
The payments included:
- $24.8 million for incomplete work
- $27 million for defective work
- $3.9 million for subsidence-related claims.
During the same period, almost 200,000 QHWS policies were issued, providing home owners across the state with valuable protection when building or renovating.
These figures demonstrate the important role the QHWS plays in supporting Queensland home owners when serious building issues arise, while providing reassurance that help is available when it's needed most.
What every home owner should know
If you're planning to build or renovate, there are a few simple steps you can take to protect yourself and your investment:
- use a QBCC-licensed contractor
- obtain multiple quotes before choosing a contractor
- always have a written contract
- ask family and friends for recommendations (and ensure they’re licensed)
- inspect previous projects where possible.
All this information and more is available on the QBCC’s Home Owner Hub – a free and practical online guide to building and renovating to help owners avoid the most common pitfalls and understand the protections in place.
For eligible projects valued at more than $3,300, your contractor is required to pay a QHWS premium before work begins. Once this has occurred, you should receive a QHWS Notice of Cover from the QBCC via email.
If you don't receive your Notice of Cover, contact your contractor to confirm the premium has been paid.
What makes Queensland's scheme so efficient?
The QHWS provides compulsory government financial protection for Queenslanders undertaking eligible residential construction work.
Applicable to residential building projects valued at more than $3,300 (including materials, labour and GST), the scheme helps to protect home owners when things don't go to plan.
One of the key features of Queensland's scheme is that it operates on a first-resort basis, making it one of only two schemes of its kind in Australia.
This means eligible home owners may be able to access assistance from the QBCC for incomplete or defective work without having to wait for their builder to become insolvent, disappear or pass away.
In practical terms, home owners can seek help from the QBCC even if their builder is still trading, removing the need to first pursue lengthy and costly court action.
By contrast, in most other parts of Australia, consumers are generally required to exhaust other avenues, which may include legal proceedings, before they can access home warranty insurance.
This first-resort approach helps eligible home owners resolve serious building issues sooner, providing greater certainty and support when they need it most.
How much support is available?
When a building project is impacted by a builder's insolvency, incomplete work or serious defects, the financial consequences can be significant for home owners.
The QHWS provides an important safety net, helping eligible home owners recover from unexpected setbacks and move forward with confidence.
Anyone planning to build or renovate should understand the protections available before work begins.
While the QHWS provides valuable protection for Queenslanders building or renovating, it is not a commercial insurance policy, in the same way that your car may be insured for market value or your home and contents are insured for replacement value, which is why it is important to understand the strict eligibility requirements and tight timeframes that apply upfront.
Specific details about the applicable timeframes and protections offered by the QHWS are available on the QBCC website.
Under the scheme, eligible home owners may be entitled to cover of up to:
- $200,000 for incomplete work
- $200,000 for defective work or subsidence-related issues after completion.
For those seeking additional peace of mind, optional cover is also available, increasing the maximum entitlement to $300,000.
This financial protection can make a significant difference when serious building issues arise, helping home owners complete their projects, rectify defects and get back on track sooner.
How long the insurance lasts
The work is covered for 6 years 6 months from the date (whichever is earlier):
- you pay the premium
- you agree to a contract
- work starts.
The period of cover may be extended where the work takes longer than 6 months to complete.
Understanding timeframes for claims
If you're considering making a claim, it's important to understand that the scheme operates within specific legislative requirements and timeframes.
For non-completion claims:
- If work has started, the contract must end within 2 years after the day work starts under the contract.
- If work has not started, the contract must end within 2 years after the day the contract was entered into.
- You must lodge your claim within 3 months after the day the contract ends.
Defective work claims
Structural defects are covered if you:
- first become aware of the structural defect within 6 years 6 months after the cover commencement day, whichever is the earlier of:
- paying the premium
- entering into a contract
- work starting
- make the claim within 3 months after the day you first become aware of the structural defect.
Non-structural defects are covered if you:
- first become aware of the non-structural defect within 6 months after the day the work is substantially complete
- make the claim within 7 months after the day the work is substantially complete.
If these requirements are not met, you may not be eligible to claim under the scheme.
Claim assessment times can also vary depending on the circumstances. Straightforward matters, such as a deposit refund where no work has commenced, are typically resolved more quickly than complex claims involving significant incomplete work.
Most building projects are completed successfully
While the QHWS provides an important safety net, it's worth remembering that the vast majority of residential building projects in Queensland are completed without the need for an insurance claim.
Approximately 150,000 QHWS policies are issued each year, and with policies generally remaining active for around six years, there are about 900,000 active policies across Queensland at any given time.
Importantly, less than two per cent of active policies result in a claim each year.
In the 2025-26 financial year, the QBCC received almost 1,970 claims under the QHWS. During the same period, we finalised more than 1,660 claims and issued 1,374 Directions to Rectify defective building work to the contractors responsible for the work, helping home owners and contractors address building issues and keep projects moving forward.
Many concerns raised by home owners are resolved before they result in a claim. Through services such as Early Dispute Resolution (EDR), and mediation and conciliation, the QBCC helps home owners and contractors resolve disputes early, often avoiding the need for more formal action.
