Home warranty insurance (builders warranty) by state
Home warranty insurance, also called builders warranty or home indemnity insurance, protects the owner of a new home or renovation if the builder can't finish the job or fix defects, and the builder must take it out in your name before starting work above each state's threshold. In most states it's a last resort that pays only if the builder dies, disappears or becomes insolvent; Victoria's scheme for contracts signed from 1 July 2026 lets owners claim when a problem is first identified.
This page sets out each state's scheme, how to check your builder's certificate, the rules for owner-builders who sell, what the cover costs, how long builders are liable for defects and how to claim. If you're a builder looking at your own business cover, see builders insurance.
By Better Rate Mate Editorial Team ยท Last reviewed
Home warranty insurance by state
Home warranty insurance protects the homeowner. It pays to finish or fix residential building work, or refunds a lost deposit, when the builder can't, and the builder must arrange it, in the owner's name, before starting work or taking payment. In most states it's a last resort: it pays only if the builder dies, disappears or becomes insolvent, or in NSW and WA loses their licence or registration in set circumstances. Victoria's new scheme, for contracts signed from 1 July 2026, is the exception.
| State | Scheme | When it's required | What triggers a claim | How long cover lasts | Maximum |
|---|---|---|---|---|---|
| NSW | Home Building Compensation Fund (HBCF), run by icare | Residential building work over $20,000 including GST. Cover must be in place before the builder starts work or takes any payment, including a deposit | Last resort: the builder dies, becomes insolvent, disappears, or has their licence suspended for not complying with a court or NCAT order to pay you | Major defects 6 years and other defects 2 years from completion; incomplete work claimed within 12 months of the work stopping | $340,000 per dwelling ($300,000 for policies before 1 February 2012); incomplete work up to 20% of the contract price |
| VIC | Home Warranty Scheme, run by the Building and Plumbing Commission, for contracts signed from 1 July 2026 (Domestic Building Insurance before that) | Domestic building contracts over $20,000 on buildings of 3 storeys or less | First resort: claim when a building issue is first identified, including lost deposits, incomplete work and defective or non-compliant work | Major defects (structural, waterproofing, weatherproofing) 6 years and other defects 2 years from completion | $400,000 per home; incomplete work up to 30% of the contract price |
| QLD | Queensland Home Warranty Scheme, run by the QBCC | Residential construction work over $3,300 including labour, materials and GST. The contractor collects the premium and pays it before work starts or within 10 business days of signing, whichever is earlier | Non-completion (the contract ends within 2 years; claim within 3 months), structural and non-structural defects, and subsidence | 6 years 6 months. Structural defects noticed in that time (claim within 3 months); non-structural defects noticed within 6 months of completion (claim within 7 months) | $200,000 for each category of loss, or $300,000 with optional additional cover |
| WA | Home Indemnity Insurance (HII), regulated by Building and Energy | Residential building work needing a building permit and valued over $20,000. The builder takes it out in the owner's name before taking payment or starting work | The builder dies, disappears or becomes insolvent, or loses their registration for failing the financial requirements | During construction and 6 years from practical completion | Lost deposit up to $40,000; incomplete or defective work up to $200,000 |
| SA | Building Indemnity Insurance (BII), underwritten through the South Australian Government Financing Authority | Building work needing development approval and valued at $20,000 or more (from 10 November 2025) | The builder dies, disappears or becomes insolvent before the work is finished or defects are fixed | Defect claims up to 5 years after the work is finished | $250,000 on current policies (lower limits on older policies) |
Home warranty in the ACT, Tasmania and the NT
The territories and Tasmania handle it differently:
- ACT: building work on houses and apartment buildings of three storeys and below, other than a car park, must be covered by residential building work insurance. QBE is currently the only authorised insurer, and the Master Builders Fidelity Fund is the only approved fidelity fund. From 1 January 2025 the minimum insurance amount rose from $85,000 to $200,000 and the time to lodge a claim from 90 to 180 days.
- NT: owners of new homes must have residential building cover through a fidelity fund certificate. On 30 March 2026 the value of work that triggers the need for a certificate rose from $12,000 to $25,000. It covers non-structural defects for a year and structural defects for six years after completion if the builder becomes bankrupt, dies, disappears or has their registration cancelled.
- Tasmania has no compulsory home warranty insurance. Its Financial Assistance Package pays up to $200,000 to consumers whose builder died, disappeared or entered voluntary administration since 1 July 2021, while the government develops a home warranty model.
How to check your builder's certificate
Ask for the certificate of insurance before you sign or pay a deposit, and check it covers your address and the work in your contract. Each certificate is for one job, so a builder's certificate for another project doesn't cover yours.
- NSW: icare's HBCF Certificates Register shows whether cover exists for a property and whether it applies to your job, for certificates issued on or after 1 July 2010. You can check the builder's licence on the Verify NSW public register. icare's certificate of eligibility for a builder isn't the same as a certificate of insurance for your job.
- Queensland: the QBCC's insurance search on your property shows home warranty policies on a property, for a fee of $54.84 per search. Policies older than 6 years and 6 months will usually have expired and won't show.
- Victoria, WA and SA: ask the builder for the certificate before work starts, and contact the scheme or insurer named on it if anything doesn't match your contract.
Owner-builders who sell within the warranty period
Owner-builders can't take out home warranty insurance on their own work in most states, but the rules bite when they sell:
- Queensland: owner-builders can't access the home warranty scheme, and must tell a buyer in writing if they sell within 6 years.
- Victoria: an owner-builder who sells within 6 years and 6 months must buy home warranty cover for work over $20,000 and include it in the sale documents. The Building and Plumbing Commission says it may direct rectification of significant defects for 10 years after completion.
- South Australia: owner-builders can't take out building indemnity insurance themselves.
- NT: owner-builders need a fidelity fund certificate that covers future owners.
What home warranty insurance costs
The builder pays the premium and usually includes it in the contract price, so you pay for it through the contract. How it's priced depends on the scheme.
In NSW, icare says HBCF premiums are risk-based: each builder has a risk profile based on its experience, the type of work it does and its claims history, and the premium for a job reflects that and the contract value. icare's HBCF premium calculator gives builders an estimate including the base premium, GST and stamp duty. In Queensland, the QBCC publishes premium tables by the insurable value of the work, with separate tables for new homes and for renovations and other work:
| Type of work | Insurable value up to | Premium |
|---|---|---|
| New residence | $300,000 | $2,102.10 |
| New residence | $500,000 | $5,142.25 |
| Renovation, alteration, addition, shed or pool | $50,000 | $543.10 |
| Renovation, alteration, addition, shed or pool | $100,000 | $899.80 |
How long a builder is liable for defects
Two different clocks run after handover: the builder's legal warranties, and the home warranty insurance that steps in if the builder can't meet them. In NSW, proceedings for a breach of statutory warranty must start within 6 years of completion for a major defect and 2 years for other defects, with 6 extra months if the defect appears in the last 6 months.
Home warranty cover lasts 6 years for major defects and 2 years for other defects in NSW and Victoria, 6 years and 6 months in Queensland (with non-structural defects noticed within 6 months of completion), 6 years from practical completion in WA, and 5 years in South Australia. None of these is 10 years, although Victoria's regulator may direct rectification of significant defects in an owner-built home for 10 years.
How to make a home warranty claim
In the last-resort states, the scheme won't pay while your builder is still trading and able to fix the problem. icare says you usually need to try other options first, such as resolving the issue with the builder directly or through dispute resolution, and then claim once a trigger event such as insolvency, death or disappearance has happened. Queensland's scheme sets time limits for each kind of claim: within 3 months of the contract ending for non-completion, and within 3 months of becoming aware of a structural defect.
In Victoria, under the Home Warranty Scheme for contracts signed from 1 July 2026, you can claim when a building issue is first identified. For a policy in another state, contact the scheme or insurer named on your certificate, and keep the contract, the certificate, photos and every message with the builder.
What home warranty insurance doesn't do
It isn't the builder's insurance. It protects the homeowner, and later owners, if the builder can't finish or fix the work. It doesn't cover the builder's own liability, tools or staff. icare also points out that HBCF isn't like regular home insurance: it doesn't cover everyday building disputes, minor problems while your builder is still trading, or maintenance and wear and tear.
In the last-resort states it doesn't pay while the builder is still trading. If your builder is still trading, icare says you usually need to try other options first, such as resolving the issue with them directly or through dispute resolution. The cover also stays with the property: icare says it protects you and anyone you sell your home to, and WA's cover protects later owners too.
What to watch for
- Ask for the certificate of insurance before you pay a deposit. In NSW and WA the cover must be in place before the builder takes any payment or starts work.
- Check the certificate names your address and the work in your contract; each job needs its own.
- In Victoria, check which scheme applies: contracts signed from 1 July 2026 come under the Home Warranty Scheme.
- Keep the certificate with your property documents. The cover protects later owners if you sell.
- Buying a home under 6 or 7 years old? Search for a home warranty policy and ask whether the seller was an owner-builder.
Common questions
What is home warranty insurance?
It's insurance a licensed builder takes out for the homeowner on residential building work above a set value. It pays to complete or fix the work, or refunds a deposit, when the builder can't. In most states it only pays if the builder dies, disappears or becomes insolvent; Victoria's scheme for contracts from 1 July 2026 lets owners claim when a problem is first identified.
How much does home warranty insurance cost?
It depends on the state, the value of the work and, in NSW, the builder's risk profile. Queensland's published table puts the premium for a new home with an insurable value up to $300,000 at $2,102.10 including GST, and for a $50,000 renovation at $543.10. The builder pays it and usually includes it in the contract price.
How do I check if my builder has home warranty insurance?
Ask for the certificate of insurance before you pay anything. In NSW you can check it on icare's HBCF Certificates Register, and in Queensland the QBCC's insurance search on your property shows policies for a fee of $54.84.
Is builders warranty 10 years?
Not usually. Home warranty cover lasts 6 years for major defects in NSW and Victoria, 6 years 6 months in Queensland, 6 years in WA and 5 years in South Australia. For an owner-built home sold in Victoria, the Building and Plumbing Commission says it may direct rectification of significant defects for 10 years after completion.
Do you need home warranty insurance as an owner builder?
It depends on the state. In Queensland owner-builders can't access the home warranty scheme and must tell a buyer in writing if they sell within 6 years. In Victoria an owner-builder who sells within 6 years and 6 months must buy home warranty cover for work over $20,000 and include it in the sale documents. In South Australia owner-builders can't take out building indemnity insurance themselves, and in the NT they need a fidelity fund certificate that covers future owners.
How long does a builder have to fix defects after handover?
It depends on the state and the defect. In NSW, proceedings for a breach of statutory warranty must start within 6 years of completion for a major defect and 2 years for other defects, with 6 extra months if the defect appears in the last 6 months. Queensland's home warranty covers structural defects noticed within 6 years 6 months and non-structural defects noticed within 6 months of completion.
Who pays for home warranty insurance?
The builder arranges and pays for it, and the cost is usually built into the contract price. In Queensland the licensed contractor collects the premium from the homeowner and pays it to the QBCC on their behalf.
General information only
This page summarises each state's home warranty scheme. It isn't legal advice. Scheme rules change, so check the current rules with your state's building regulator or scheme before you sign a contract, and read the policy or certificate for the cover that applies to your job.
