Maximum home warranty entitlements

Home warranty insurance must be taken out for the new construction of multiple-unit dwellings up to 3 storeys above a car park. The developer will not be covered for incomplete or defective work, but subsequent owners of units and the body corporate will be covered for defects.  

Each unit qualifies for its own entitlement as explained above. If the claim relates to common property (e.g. car parks, foyers, shared stairs) the claim will be split between each unit's lot entitlement in accordance with their Community Management Statement.

Residential construction work including the renovation, alteration or repair work done by a unit owner for their unit, or done by the body corporate for common property, in or on the site of a multiple-unit dwelling not exceeding 3 storeys above a car park, are covered and premium must be paid.

Multiple-unit dwellings that have more than 3 storeys above a car park are not considered residential construction work and are not covered under the QHWS. Find out what’s covered by reading our A to Z guide of insurable work. 

Specific limitations apply for a duplex.

Before the work is complete

For non-completion, defects, accommodation, vandalism and theft we can pay a maximum per unit of: 

• if you have standard cover – $100,000
• if you have optional additional cover – $150,000
• both these amounts include the cost of alternative accommodation and removal and storage costs.

For fire or storm damage caused because the work was incomplete – for each unit:

• if you have standard cover – $100,000
• if you have optional additional cover – $150,000
• as long as we have approved the non-completion claim.

After the work has been completed

Defects and accommodation cover only applies, up to a maximum per unit of: 

• if you have standard cover – $200,000
• if you have optional additional cover – $300,000
  • both these amounts include the cost of alternative accommodation and removal and storage costs.

Home owners who are owner occupiers may be entitled to accommodation costs if we approve a claim for non-completion or defects, and if your home is not habitable by you. This does not apply if you are renting the property to tenants.

We will pay for the cost of alternative accommodation and removal and storage costs up to a maximum of:

• if you have standard cover—$5,000  
• if you have optional additional cover—$10,000  

This is included in the total maximum amounts noted above ($200,000 for standard cover, and $300,000 for optional additional cover).

In general, the accommodation entitlement will end when the rectification or completion work reaches practical completion (some limits apply). The start date for accommodation entitlement for each type of claim is outlined below. 

Accommodation entitlement for a non-completion claim starts when (whichever is the later date of):

• the date the claim was lodged
• the date the contact ended
• the date the house should have reached practical completion under your original contract.

Accommodation entitlement for defective work claims starts from the time your house is uninhabitable because of either the:

• defective work
• repair work that needs to be carried out to fix the defect.