Home Indemnity Insurance

Building a reputation as a trusted residential builder in Western Australia means delivering peace of mind to your clients—and protecting your business. That’s where Home Indemnity Insurance comes in.

As a mandatory requirement for builders working on residential projects over $20,000, this insurance safeguards both your clients and your company in the event of unforeseen circumstances.

Why do builders need Home Indemnity Insurance?

Home Indemnity Insurance protects homeowners against financial loss if their builder cannot complete the project or rectify defects due to death, insolvency, or disappearance. By securing this cover, you’re not only complying with Western Australian law but also reinforcing trust with your clients by demonstrating your commitment to their financial security.

Do I need Home Indemnity Insurance?

If you are a residential builder or tradesperson in Western Australia working on projects valued at $20,000 or more, Home Indemnity Insurance is a legal requirement. This applies to:

• New home constructions
• Renovations and extensions
• Any residential building where a home building contract is in place

Even if your business is financially stable, unforeseen circumstances like insolvency or death can occur. Home Indemnity Insurance ensures your clients are protected, giving you and your business an added layer of security and credibility.

Key Benefits for Builders

• Legal Compliance
• Home Indemnity Insurance is required under the Home Building Contracts Act 1991 for projects valued at $20,000 or more.
• Non-compliance can result in fines and legal complications, potentially impacting your ability to operate.
• Client Confidence
• Offering Home Indemnity Insurance reassures clients that their investment is protected, making your services more attractive and credible.
• Business Reputation
• Compliance and professionalism build your brand’s reputation in a competitive market.
• Streamlined Processes
• With the right broker, obtaining and managing insurance certificates is quick and straightforward, saving you time and hassle.

What does Home Indemnity Insurance cover?

Home Indemnity Insurance provides financial protection if a builder cannot complete a residential project or address valid claims for defective or unsatisfactory work due to specific circumstances. These circumstances include situations where:

• An individual builder has passed away, disappeared, or become insolvent.
• A corporate builder, such as a company, has ceased operations or gone into insolvency.

This coverage ensures homeowners are protected from losses related to:

• Deposits that cannot be recovered
• Unfinished work if the builder cannot complete the project
• Rectification costs for defects identified within the statutory warranty period (typically six years post-completion)

Smart Insurance Solutions for Residential Builders

We provide a comprehensive suite of insurance solutions designed specifically for residential builders, including Contract Works, Professional Indemnity, Management Liability, Workers Compensation, Motor Fleet insurance, and beyond. Whatever your project or business needs, we'll ensure you’re fully covered every step of the way, giving you peace of mind and freedom to focus on building success.

Read more about our smart insurance solutions for residential builders here.