Home Warranty Insurance

In New South Wales, legislation and regulations require that Home Warranty Insurance be obtained for the benefit of the home owners before the commencement of any residential building work where the contract price is over $12,000; or where the contract price is unknown, the reasonable market cost of the labour and materials involved is over $12,000. If you live in another state please ring to seek our advice.

Under Home Warranty Insurance policies issued from 1 July 2002, home owners in New South Wales may lodge an insurance claim for losses or damage resulting from defective work and non-completion of work only if the contractor, or owner-builder or developer becomes insolvent, dies or disappears. This was a change from earlier policies under which the home owners were able to lodge an insurance claim regardless of the circumstances of the contractor or builder or developer.

The New South Wales government has recently announced that commencing on 1 July 2010 onwards the Government will underwrite and capitalise the Home Warranty Insurance Scheme, which will be fully funded by premiums. Feel free to give us a call if you wish to find out more about the implication of this reform.