Builders Warranty, also known as Home Warranty Insurance, serves as a protective measure for homeowners in the event of unforeseen circumstances. It provides coverage if the builder loses the deposit, fails to complete the job, or delivers defective work. Additionally, coverage extends to situations where the builder dies, disappears, or faces bankruptcy.
In New South Wales, the Home Building Compensation Fund (HBCF) acts as a safety net for homeowners grappling with incomplete or faulty building work performed by builders or tradespersons.
Licensed contractors engaged in residential projects valued at over $20,000 are mandated to acquire insurance through the HBCF. This insurance must be secured before initiating any work or accepting payments, including deposits, under the contractual agreement.
Home Building Compensation Fund
Our Methodology: Evaluating Builder and Tradesperson Eligibility
Our approach centres on conducting a comprehensive risk assessment of builders and tradespeople to ascertain their qualification for insurance coverage. Certificates of Eligibility provide a breakdown of the scope of work a contractor is authorised to undertake. Upon confirmation of eligibility, builders or tradespeople can proceed to request a Certificate of Insurance tailored to the specific projects they have contracted to fulfil.
Comprehensive Homeowner Protection: Our Coverage Details
Our insurance coverage provides homeowners with robust protection against losses stemming from defective or incomplete work. This safeguard is applicable in various scenarios involving the builder or tradesperson:
Financial Instability:
- Insolvency of the builder.
- Death of the builder.
- Disappearance of the builder.
Licence Suspension by NSW Fair Trading:
- Suspension of the building license due to non-compliance with a money order issued by the NSW Civil and Administrative Tribunal or a court in favor of the homeowner.
Failure to Commence Work:
- Loss of deposit under the building contract, claimable within 12 months from the failure to commence work.
Failure to Complete Work:
- Up to 20% of the contract price (including any variations), claimable within 12 months from the cessation of work.
Major Defects:
- Cost of repair, claimable for up to 6 years from the completion of the work. If defects are identified in the last 6 months of the insurance period, homeowners can claim within 6 months of awareness.
Non-Major Defects:
- Cost of repair, claimable for up to 2 years from the completion of the work. If defects are discovered in the last 6 months of the insurance period, homeowners can claim within 6 months of awareness.