Change, cancel or amend cover | Queensland Building and Construction Commission

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Within certain conditions home warranty cover can be:

  • changed:
    • to correct errors of fact
    • to increase or decrease the value of the project, if an error was made when the policy was first taken out
    • to change details of cover, e.g. when cover is taken out for multiple units and the number of units is incorrect.
  • amended:
  • cancelled:
    • if the project does not go ahead
  • revoked:
    • if the building work is deemed to be something other than residential work.

    Changing, cancelling or amending cover is the contractor's responsibility. We can only make these changes if certain conditions required by law are met.

    Where appropriate, we will either:

    • refund the premium in full
    • provide a partial refund of the premium to reflect the insurable value of the work where that value has changed because of a variation.

    Changing details of cover

    We can correct an error of detail, but cannot correct a change of detail, except for when the value changes because of a variation.

    This is because when we issue a notice of cover, it:

    • relates to a specific dwelling 
    • is not transferable to another property.

    This means we are unable to transfer the policy to another site or to a different owner.

    1. You will need to provide us with: 

      • a copy of the contract
      • the variation document.
    2. Write a letter outlining the change you want us to make. The letter must be signed by: 

      • you
      • the home owner.
    3. Lodge the letter and paperwork:

    Increasing the insurable value of work

    If the variation increases the insurable value of work, you may need to pay an extra premium. Depending on the value of the variations, this is either: 

    • optional
      • if the value of the single or total variations (if more than one) is less than $5,000.
      • note that the home owner may want you to pay the additional premium so that the insurance documents reflect the true value of the work.
    • compulsory
      • if the value of the single or total variations (if more than one) is $5,000 or more.
      • if this is the case you must pay an additional premium.

    You must pay any additional premiums before any work relating to the variation starts.

    Once the additional premium is paid, we will send you and the owner an amended notice of cover reflecting the new insurable value of the work.

    How to increase cover

    You can increase cover in two ways. 

    1. You will need to find the policy in myQBCC.

      1. Select “Amend”
      2. Select “Contract Value”
      3. Enter new value
         
    2. Pay additional premium through the payment gateway

    1. Call 139 333 and one of our customer service officers will amend the policy and take payment.

    Decreasing the insurable value of work

    If the variation decreases the insurable value of the work, we refund part of the premium to the home owner or any person nominated by them. 

    We can refund the difference between the premium originally paid for the work and the premium that would be payable on the reduced value of the work:

    • original premium - premium payable on reduced value = partial refund amount

    Once the decrease has been made, we will provide an amended notice of cover reflecting the new insurable value of the work. 

    How to decrease the value

    You can decrease cover in two ways. 

    1. Yo will need to provide us with a copy of:

      • the signed variation (or variations if there have been more than one).
    2. Lodge the letter and supporting document with us:

    1. You will need to provide us with:

      • a signed and dated copy of the building contract (we do not require a copy of the terms and conditions)
      • a copy of the signed variation (or variations if there have been more than one) detailing changes made to the contract.
    2. You, as the licenced contractor, can write to ask us to decrease the insurable value of the work under the contract.

      Your letter should:

      • ask us to decrease the insurable value of the work under the contract
      • confirm who any premium refund should be paid to. 
    3. Lodge the letter and supporting documents with us:

    Cancelling cover

    You can cancel cover if either:

    If you want to cancel because the work has not gone ahead this can only happen if all of these things happen:

    • you, as the licensed contractor, request this cancellation in writing
    • the construction work has not started
    • the licensed contractor and the home owner have ended the contract
    • less than 1 year has elapsed since the day the contract was signed
    • the deposit has been refunded, less lawful deductions
    • you've given us all the required information evidencing both parties' agreement that these requirements have been satisfied.

    When we can confirm the relevant requirements have been satisfied, we will refund the premium to either:

    • the contractor or construction manager
    • a person nominated in writing by them.

    Cancelling cover for speculative residential construction work

    Cover can also be cancelled where the work carried out is speculative residential construction work.

    The requirements are similar to those outlined above, but we will also need evidence that development approval has not been granted for the work or has been rescinded.

    Cancelling cover for work done under construction management contracts

    We can cancel cover where the work was to be carried out under a construction management contract.

    The requirements are similar to those outlined above, but we also need confirmation:

    • all construction management trade contracts have ended
    • deposits paid under the construction management contract and all construction management trade contracts have been refunded less any amounts that may be lawfully deducted
    • the work has not started under any contract.

    Cancelling optional additional cover

    The home owner can cancel optional additional cover, with similar conditions.

    The refund is paid to the home owner.

    How to cancel cover

    To cancel cover you must either:

    • fill in a form
    • request the cancellation in writing.
    1. Lodge the form with us:

    1. If you are not filling in the form you will need to provide us with:

      • a letter from the licensed contractor:
        • requesting the cover be cancelled
        • detailing who any premium refund should be paid to
      • a declaration by both parties that no work has started
      • a signed and dated copy of the building contract including the deposit/stage payments section (we don't need a copy of the terms and conditions)
      • receipts or reconciliation showing the deposit has been refunded
      • evidence the contract has come to an end, where applicable, a copy of the written notice of withdrawal under the cooling-off period.
      Extra documents for speculative construction work

      If you are cancelling cover for speculative construction you need to provide us with:

      • all of the documents detailed above
      • a letter from the licensed contractor:
        • requesting the cover be cancelled
        • detailing who any premium refund should be paid to
      • a declaration by both parties that no work has started
      • receipts or reconciliation showing the deposit has been refunded
      • a letter from the certifier stating that development approval has not been granted for the work or has been rescinded.
      Extra documents for work done under construction management contracts

      If you are cancelling cover for work done under construction management contracts you need to provide us with:

      • a letter from the licensed contractor:
        • requesting the cover be cancelled
        • detailing who any premium refund should be paid to
      • a declaration by both parties that no work has started
      • a signed and dated copy of the building contract including the deposit/stage payments section (we don't need a copy of the terms and conditions)
      • receipts or reconciliation showing the deposit has been refunded
      • evidence the contract has come to an end, where applicable, a copy of the written notice of withdrawal under the cooling-off period.

      Make sure you provide documents for each of the construction management trade contracts.

    2. Lodge the letter and all supporting documents with us:

    Revoking cover

    A licensed contractor may pay a premium for work that is not insurable because it is not residential construction work.

    We can only revoke cover if you provide enough documents to prove the work is not insurable.

    If we are satisfied that the work is not residential construction work, we can:

    • revoke or cancel the cover
    • refund the premium paid for this work.

    Who receives the refunded premium

    We will refund the premium to the licensed contractor if they:

    • have refunded the premium amount to the home owner
    • can show us documents to prove they have done so.  

    If there is no evidence that the licensed contractor has refunded the premium to the home owner, then the premium will be refunded to the home owner.

    How to revoke cover

    1. You will need to provide us with:

      • enough evidence to allow us to determine whether the work is residential construction work, for example:
        • a letter from the certifier that confirms the work is not residential construction work
        • a copy of the contract that confirms the work is commercial
        • if applicable, a copy of a contract that identifies that it is a contract for supply of materials only
      • evidence that you have refunded the insurance premium to the home owner, if this is the case.
    2. You, as the licenced contractor, can write to ask us to cancel the cover because it is not insurable through the Queensland Home Warranty Scheme. 

      Your letter should:

      • ask us to cancel the cover because the work is not residential construction work
      • confirm who the premium refund should be paid to.

    Last reviewed: 27 Sep 2021 Last published: 27 Sep 2021
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