Definition of insurable residential construction work
Most residential building work in Queensland valued at more than $3,300 (including materials, labour and GST) must have cover under the Queensland Home Warranty Scheme taken out.
It’s important to note the Queensland Home Warranty Scheme does not cover all building and construction work.
Multiple-unit dwellings more than 3 storeys above a car park are not considered residential construction work and are therefore not insurable under the Queensland Home Warranty Scheme. Find out more.
This premium for cover must be built into the contract price if you are:
- building
- extending
- adding
- altering
- renovating
- repairing
any residential building, which includes a:
- new home
- residential outbuilding that has a roof, e.g. a garage or carport, pool change room
- manufactured home
- home in an over-50s village (that is not part of a registered retirement village )
- townhouse, duplex or multiple-unit dwelling up to 3 storeys above a carpark
Home warranty insurance must also be taken out when the project cost (labour, materials and GST) is more than $3,300 for:
- replacing or refitting fixtures or fittings in a kitchen or bathroom
- replacing or fixing windows or doors
- working on a home's deck or verandah
- restoring or repairing roofs
- doing any building work that affects the structural integrity of the building
- working on or in the home or related outbuilding (e.g. painting, tiling, plastering)
- doing any project that requires building or plumbing approval on anything attached to the home or related outbuilding
- building work for the primary water supply (e.g. installing a water tank for primary water supply)
- building work for sewerage or drainage (e.g. working on a sanitary drain connecting a residence to the sewerage main)
- stormwater drainage (e.g. repairing a downpipe or gutter)
- working on any structure attached to the external part of a home or related outbuilding which has no other supporting structure (e.g. awning, handrail)
- working on stairs or a ramp which provide access and are permanently attached to the home or outbuilding
- constructing or installing swimming pools (but not renovating swimming pools)
- building associated infrastructure as part of a bigger project (however, these items are only covered for non-completion claims and not for defective work), including:
- driveways
- paths
- roads
- fences
- air conditioning
- hot water systems
- security doors and grilles
- landscaping.
How to check if your multiple dwelling is insurable
You must pay a premium for home warranty insurance for:
- multiple dwellings that are 3 storeys or less above a car park.
You do not pay a premium for home warranty insurance for:
- multiple dwellings more than 3 storeys above a car park as home warranty insurance does not apply
How to work out the area of a car park
If your car park covers more than half the full storey do not count it as one of the levels.
To work out the area used as a car park, you must:
- include all areas used to drive a car into a parking bay (e.g. access lanes, ramp, driveway)
- only measure the area which lies within the building's footprint.
To work out if the storey should be counted,
- measure the area covered by the car park
- divide it by the total area covered by the storey
- multiply this number by 100
- i.e. (car park area/total storey area) x 100 = x%
Count the car park as a storey if:
- x is less than or equal to 50%
Do not count the car park as a storey if:
- x is greater than 50%.
Construction work not requiring home warranty insurance
If done on their own (that is, not as part of a bigger building project) you do not need to get home warranty insurance for building or installing:
- driveways
- paths
- fences
- air conditioning
- hot water systems
- security doors and grilles
- landscaping.
What is not insurable residential construction work
Insurance through the Home Warranty Scheme cannot be taken out for building or renovating a:
- multiple-unit dwelling of 4 storeys or more above a car park
- boarding house
- caravan park
- hostel
- backpackers accommodation
- guest house
- hotel
- school
- hospital
- retirement village
- owner-builder work.
You cannot take out home warranty insurance for renovating, extending or adding to a:
- caravan
- tent
- trailer
- temporary building e.g. a demountable.
You can't take out home warranty insurance on:
- projects costing less than $3,300 (including materials, labour and GST)
- commercial building work
- work done by unlicensed contractors
- owner builder projects.
Mixed use construction not insurable
Mixed residential-commercial construction is not insurable.
For example, if your project has 2 storeys of shops and 1 storey residential you cannot insure it through the Queensland Home Warranty Scheme.
