NSW HOME BUILDING COMPENSATION FUND
Clear guidance for NSW builders on HBCF eligibility, project certificates and homeowner protection. Speak with ABS Insurance Brokers about the home warranty requirements for your next residential building project.
Tell us about your business and upcoming work. An ABS broker will discuss your eligibility, certificate requirements and the support available.
Prepare With Confidence
Help When You Need Them
Construction Specialists
Local Guidance
HOME WARRANTY INSURANCE IN NSW
Home warranty insurance is commonly used to describe Home Building Compensation Fund (HBCF) cover in NSW. It provides a financial safety net for homeowners if a builder cannot complete insured work or meet covered obligations because a qualifying event occurs.
The builder arranges the project cover, while the protection is for the homeowner. ABS Insurance Brokers helps builders understand the process and the information needed for their application.
WHEN COVER IS REQUIRED
In NSW, most residential building work valued over $20,000 including GST requires HBC cover, unless an exemption applies. This includes new homes, relevant apartment projects, renovations and swimming pools. The contracting business must provide the certificate to the homeowner or developer before requesting or accepting payment, including a deposit, and before work starts.
Requirements depend on the work and contracting arrangements. Check the project early, particularly where there are multiple dwellings, changes to the contract value or possible exemptions. SIRA explains the requirements for builders and tradespeople.
HOMEOWNER PROTECTION
A claim may arise if the builder dies, disappears, becomes insolvent, or has their licence suspended for failing to comply with a court or tribunal money order in the homeowner’s favour. A defect or disagreement alone does not automatically activate the policy.
The six-year and two-year periods are not separate $340,000 allowances. Notify the insurer promptly if a possible loss emerges; policy conditions and claim deadlines need to be checked for the individual circumstances. Read SIRA’s homeowner guidance.
Cover can include an insured loss of deposit where work does not commence. For partially completed work, non-completion cover is generally limited to 20% of the contract price, within the overall policy limit. The amount payable depends on the loss, qualifying event, policy wording and applicable sublimits. SIRA outlines the minimum cover requirements.
GETTING STARTED
Eligibility and project insurance are two different steps. A Certificate of Eligibility allows an assessed builder to apply for insurance within approved limits. It does not insure every job automatically: each project requiring cover needs its own Certificate of Insurance.
Have your contractor licence, ABN or ACN, business details and proposed workload ready. Depending on the assessment, supporting information may include financial statements, assets and liabilities, construction experience and details of current or planned jobs. The required documents depend on your circumstances and icare’s assessment criteria.
Your eligibility may specify construction types, maximum contract values and the number or value of open jobs. Review those limits before committing to a larger project or additional work.
Contact ABS early if you need help identifying the next step. Approval and processing times depend on icare’s assessment and the completeness of the application. Check icare’s current eligibility guidance.
MANAGE YOUR COVER
The icare HBCF Portal is the online system for managing your HBCF relationship. Builders can manage eligibility and project cover and choose appropriate assistance from a service provider.
Depending on your access and account, portal functions include applying for certificates, viewing eligibility and policies, monitoring open jobs and marking completed projects as closed. Keeping project records current helps you understand the capacity available for future work.
Speak with ABS about the assistance you require, whether you are applying for the first time, reviewing your eligibility or preparing an upcoming project. If portal assistance forms part of the agreed service, we will confirm the appropriate nomination details and access permissions with you.
Access should match the service agreed. Keep your login credentials private and use the portal’s authorised access process. icare remains responsible for its eligibility and insurance decisions.
WHY ABS INSURANCE BROKERS
Residential construction involves contracts, clients, project schedules and insurance administration. ABS Insurance Brokers brings construction insurance knowledge to the conversation, helping you understand what information is needed and how your home warranty requirements fit alongside the rest of your insurance arrangements.
Our approach starts with your business: the work you undertake, your existing eligibility and what is coming next. We explain the application steps in plain language and discuss the support available for your circumstances.
COMMON QUESTIONS
No. NSW home warranty insurance concerns specified losses connected with residential building work. Home and contents insurance addresses different risks to the home and belongings. Builders should also consider their separate contract works and liability insurance needs.
There is no single timeframe for every application. Existing eligibility, the project details, supporting documents and any referral for assessment can affect processing. Ask ABS about your circumstances well before the planned start date.
Provide the requested information as completely and accurately as possible. Missing or inconsistent details can lead to further questions. Tell your broker if something is unavailable so the next step can be discussed.
The premium depends on the project and the builder’s risk profile. icare provides an online premium calculator for estimates. Request a breakdown of the insurance premium, taxes and any agreed service fees; an estimate does not confirm cover.
Contact us with your current eligibility details and the changes you are considering. We can discuss the application process and the support available for a review, different project types or proposed increases in workload.
No. Eligibility establishes the limits within which you may apply. The project-specific Certificate of Insurance is the document confirming cover for the insured job.
Keep the contract, certificate, payments and correspondence together. Contact the builder about the issue and notify the insurer promptly of a possible loss. Obtain advice about the applicable claim requirements and time limits.
SPEAK WITH ABS
Whether you need to understand your eligibility or prepare for an upcoming job, talk to ABS Insurance Brokers about your home warranty insurance requirements.
General information only, prepared without considering your individual objectives, financial situation or needs. Cover depends on the relevant policy terms, conditions, exclusions and limits. Review the applicable policy documents and obtain advice appropriate to your circumstances. Scheme information checked October 2026.
