Builders warranty insurance helps protect homeowners when a licensed builder cannot complete work or meet certain obligations because of insolvency, death or disappearance. ABS Insurance Brokers helps builders understand eligibility, applications and project certificates.
Prepare With Confidence
Help When You Need Them
Construction Specialists
Local Guidance
Builders warranty insurance, also called home building compensation cover in NSW, is designed to provide a safety net for eligible homeowners when a builder cannot complete residential building work or meet certain warranty obligations because of a covered event. Requirements vary by state, project type and contract value. ABS Insurance Brokers helps builders understand the applicable process and arrange the required project documentation.
Builders generally need to establish eligibility before applying for project-specific home building compensation cover.
A project certificate confirms that the required warranty or compensation cover has been arranged for the eligible work.
The applicable scheme may protect eligible homeowners against certain losses when a builder cannot meet its obligations.
Cover may respond when a builder is unable to complete work or honour certain obligations because of a qualifying event.
Depending on the applicable scheme and policy, eligible claims may include certain major or other defects when the builder cannot meet its obligations.
Correct certificates, project details and timing help builders meet their obligations before work starts or payment is received.
Practical support for residential builders and construction businesses.
Help understanding the information and documents required.
Assistance with project applications and certificate requirements.
Guidance that recognises requirements can differ between Australian states.
Speak with a broker who understands the construction industry.
Speak with ABS Insurance Brokers about eligibility, project certificates and builders warranty insurance for your next residential project.
Builders warranty insurance is designed to protect eligible homeowners against certain losses if a licensed builder cannot complete work or meet specified obligations because of a qualifying event. It is not a replacement for a builder’s responsibility to complete and rectify work.
Requirements vary between states and territories. In NSW, most residential building work over $20,000 including GST requires home building compensation cover, subject to applicable exemptions. Builders should confirm the requirements for each project before accepting a deposit or starting work.
The Home Building Compensation Fund, or HBCF, is the NSW home building compensation scheme. It may provide protection to eligible homeowners when a builder becomes insolvent, dies, disappears or is otherwise unable to meet certain obligations, subject to the policy and scheme rules.
A Certificate of Eligibility confirms that a builder has been assessed as eligible to apply for project-specific home building compensation certificates. Eligibility can include limits on project types, contract values, open jobs and other conditions.
Builders should begin the eligibility and project certificate process well before work starts. In NSW, the certificate generally needs to be in place before taking a deposit or commencing eligible residential building work. Your broker can help confirm the timing for your project.
