Builders Warranty Insurance – NSW
Builders Warranty Insurance NSW
Builders Warranty Insurance – NSW
Builders Warranty also referred to as Domestic Builders Insurance protects the home owner if the Builder lose their deposit, don’t finish the job or it’s defective, and the builder dies, disappear or become bankrupt.
The Home Building Compensation Fund (HBCF) serves as a safety net for homeowners in New South Wales who find themselves dealing with incomplete or faulty building work performed by a builder or tradesperson.
Licensed contractors undertaking residential projects exceeding $20,000 in value are required to secure insurance coverage via the HBCF. This coverage must be obtained before commencing any work or accepting payments under the contract, including deposits.
Builders Warranty Insurance - Home Building Compensation Fund
Our process involves conducting a thorough risk assessment of builders and tradespeople to determine their eligibility for insurance coverage. Certificates of Eligibility detail the extent of work a contractor can take on. Once a builder or tradesperson is deemed eligible, they can proceed to apply for a Certificate of Insurance for specific projects they have contracted to complete.
Coverage for homeowners for losses arising from defective and incomplete work where the builder or tradesperson:
What’s included in the Policy:
Coverage for homeowners for losses arising from defective and incomplete work where the builder or tradesperson:
- becomes insolvent
- dies
- disappears
- has their building licence suspended by NSW Fair Trading due to non-compliance with a money order made in favour of the homeowner by the NSW Civil and Administrative Tribunal or a court.
Failure to commence work: loss of deposit under the building contract, claimable for up to 12 months from the failure to commence.
Failure to complete work: up to 20% of the contract price (including any variations), claimable for up to 12 months from the cessation of work.
Major defects: the cost of repair, claimable for a period of up to 6 years from completion of the work. If the homeowner becomes aware of the defects in the last 6 months of the period of insurance, they may claim within 6 months of awareness of the defect(s).
For non-major defects: the cost of repair, claimable for a period of up to 2 years from completion of the work. If the homeowner becomes aware of the defects in the last 6 months of the period of insurance, they may claim within 6 months of awareness of the defect(s).
Why choose BuildSafe?
- BuildSafe Insurance Brokers focus specifically on insurance solutions tailored to the construction and building industry. We have a deep understanding of the unique risks and challenges in this field. BuildSafe can create insurance packages that are tailored to your unique needs. We understand that every construction project or business is different, and we can design coverage to match your specific requirements. We have access to both Domestic Building Insurance providers and our focus on the construction and building sector makes us a strong choice for anyone in this industry looking for reliable insurance coverage and guidance.
Obtaining Home Warranty Insurance is a straightforward process – just that many Insurance companies make it hard for the Builder. Not so at BuildSafe Insurance Brokers. We’ll help and get our hands dirty.
Latest News
When do you need to get a Building Permit in Victoria? Part B
To reiterate, if the work value (Builders Price) is above a certain value then the Home and Contents Insurer, Will...
Read More
When do you need to get a Building Permit in Victoria? Part A
Owners who have decided to add a Deck, Pergola, Shed, Garage, small alterations, pools, fencing, etc, want to maintain, that...
Read More
WA Home Buyers – GOOD NEWS!
Good news for WA Home Buyers, the WA Government has increased the size of the potential Indemnity payout from $100k...
Read More
