Most building work done in Queensland valued over $3,300 (including labour and materials) must have home warranty insurance.
Home warranty insurance is a protection for homeowners. It provides cover in situations where the contractor fails to complete the work, the work is defective, or subsidence occurs.
When can a homeowner make a claim?
If you won’t or can’t finish the work under a contract, or fail to fix defects, an owner can make a claim.
However, while the insurance helps the homeowner to complete a project or fix defects, it doesn’t mean that you are no longer responsible. Once we have paid a claim, we will recover the amount from you.
Most residential building work done in Queensland valued over $3,300 (including labour and materials) must have home warranty insurance.
As part of the building process, the builder pays a premium to us to insure the construction. The amount is included as part of your contract, and is paid before work begins.
It may protect you where:
If you've bought a house with defects or subsidence that you knew about before the purchase, you can't access our Queensland Home Warranty Scheme.
We recommend that you organise a pre-purchase building inspection before you buy a home to find out whether it has any defects. We also advise that you make it a condition of your contract that you are satisfied with the outcome of this inspection.
For more information about how we can assist with complaints about defective building work, see Defective work complaints.
If you’re about to buy a new home, you can check to see if it has cover under the Queensland Home Warranty Insurance Scheme. It lasts for 6 years and 6 months from when the premium is paid, though it can be extended if the construction was over 6 months. It may help you with any defects that develop after you move in.
While your solicitor will generally organise all the relevant searches on the property when you're buying a home, you can also place a search request with us yourself.
What does this mean for licensed painters?
It is important that you are aware of recent changes to the law concerning what is insurable building work and premiums for the Queensland Home Warranty Scheme (the Scheme). The Scheme is managed by the Queensland Building and Construction Commission (QBCC).
These changes apply to contracts signed by both parties on or after 28 October, 2016.
New premium tables from 1 July 2017:
How are premiums set?
The Queensland Home Warranty Scheme is not-for-profit. Premiums are based on expected future claims and the costs of managing the Scheme.
How much are premiums increasing?
Premiums are increasing by 3.5% for contracts signed on or after 1 July 2016.
Who will be affected?
All contracts for residential construction work and speculative builds where the value of the work is more than $3,300.