Are you a licensed builder involved in domestic building projects? No matter your level of experience, there may be times when things don’t go as planned, or you find yourself unable to fulfill your commitments and complete the project. This can have serious consequences for both you and your clients.
Builders Warranty Insurance (also known as Home Warranty Insurance) acts as a safety net for homeowners, covering losses due to faulty workmanship or incomplete work if their builder passes away, disappears, or becomes insolvent and is unable to cover their debts.
What is Builders Warranty Insurance?
Builders Warranty Insurance is designed to protect homeowners when building projects cannot be completed due to the builder’s death, disappearance, or insolvency. This insurance provides compensation for losses from faulty or unfinished work, ensuring homeowners have financial recourse if their builder is unable to meet their obligations.
A Builders Warranty insurance scheme is a legal requirement under State/Territory law, in all states except Tasmania, for builders carrying out domestic building contracts. If you are a licensed builder, you may need Builders Warranty Insurance to protect your clients.
As a guide, you will need to get cover when the value of your building works go above the below amount in various states:
- New South Wales, Western Australia, and the Australian Capital Territory: $20,000
- Victoria: $16,000
- Northern Territory and South Australia: $12,000
- Queensland: $3,300 ($1,100 for Hydraulic Services Design)
If you own a home and are having work done to your home by a builder including renovations or an extension, you will need Builders Warranty Insurance. If it is a requirement in your state, your contractor should arrange the insurance for you. It is best to get a copy of the paperwork before you sign the contract to ensure you are covered.
You will need a copy of the builders warranty certificate from your builder to make a claim.
Request a QuoteHow Coverforce can help
At Coverforce, we understand the risks involved in any construction work. Our experienced insurance brokers and in-house claims team know the legal requirements in your state and will help to arrange the right Builders Warranty Insurance program for your needs.
For more information or to arrange cover, please contact us.
Alternatively, you can simply fill out a Builders Warranty Insurance Quote form below and one of our insurance brokers will get in touch with you within one business day.
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