What is Home Warranty Insurance?
Can be called a number of different names, Residential Home Warranty, Home Indemnity, Home Owners Warranty, Domestic Building Insurance….
Whatever the phrase used, Home Warranty insurance is for the benefit of the purchaser. Whether the home/renovation/extension is built by an owner Builder or Builder.
Depending on what state, the minimum cost of works is e.g VIC $16,000 above that amount requires Builders Warranty.
The policy is for the benefit of the purchaser but can only be claimed upon by the purchaser if the Owner Builder or Builder is dead, disappeared or insolvent. Otherwise the purchaser has to ‘chase’ the builder.
The term of the Insurance is 6 years from the final (Certificate of occupancy). The insurance is 6 years for Structural defects & 2 years for Non-Structural defects.
Owner Builders are required to provide a defects report from an approved inspector plus Building Permit, Final & Proof of Identity before Warranty will be issued.
How to get Home Warranty Insurance
For Owner Builders, the process is simple through BuildSafe insurance Brokers – www.buildsafe.com.au where information regarding each states requirements for owner Builder Warranty are displayed together with a checklist for documents required, Product Disclosure Statement and list of approved inspectors. BuildSafe make it easy for you!