What is Home Warranty Insurance

Home Warranty Insurance is designed to protect home owners against losses caused by the death, disappearance or insolvency of their Builder.

Home Warranty Insurance covers losses incurred by the owner which can include additional costs to complete the construction along with any defective works caused by a breach of statutory warranties, during:

• The construction period; or
• A defined period of time after completion.

Licensed building contractors dealing directly with home owners and undertaking work that is required to be warranted, must purchase home warranty insurance prior to the commencement of the work.

Legislation outlining the extent of home warranty insurance varies across the country. (Note: The following table is provided for comparison only. Full detail should be sought from the state government authority)

State	Period of Warranty Cover	Minimum Value of work to be Insured
NSW	6 Years	$12,000
ACT	5 Years	$5,000
VIC	6 Years	$12,000
SA	5 Years	$12,000
WA	6 Years	$12,000