New premium tables from 1 July 2018:
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.
New QBCC documents
You told us...we listened...and we've improved.
The new QBCC documents you will sight when certifying building work are the result of your feedback - with licence class now included and more details on the work being performed.
Contracts signed before 28 October will receive a Certificate of Insurance. All contracts signed on or after 28 October will receive a Notice of Cover.
Both of these documents have been provided below to help you familiarise yourself with the new look and additional information.
Before 28 October
Contractor insurance requirements: Queensland Home Warranty Scheme reforms - effective 28 October 2016
QBCC Insurance - Key Reforms
The QBCC is the regulator of the building industry in Queensland, issuing licences to contractors, providing a free dispute resolution service and administering a home warranty scheme to provide insurance cover for residential construction work in Queensland.
Under the home warranty scheme, licensed contractors must pay a premium on behalf of the consumer for residential construction work they carry out.
If you’re the owner of a home or 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 directly access the service.
There will be a premium increase of 3.85% for speculative builds and residential construction contracts signed on or after 1 August 2019.
Home owners are reminded of the effectiveness of the QBCC’s Home Warranty Scheme, following media coverage about the lack of effective cover in some states.
By contrast, the QBCC scheme paid out more than $40 million in claims in the 2014-2015 financial year.
More information about the QBCC Home Warranty Scheme is available on this website.
QBCC Home Warranty Insurance must be paid for all insurable residential construction work over $3,300.
Commercial Construction is not insurable under the QBCC Home Warranty Insurance unless some of the work is residential (which may be insurable).
When you build, you must get public liability insurance. It protects you from serious financial loss if anyone is injured or killed, or has their property damaged, whilst on site.
This also applies if someone is injured when trespassing on your land before building work has started, or during construction.
You and your builder should discuss public liability insurance responsibilities before signing any contract for major building work on vacant land. Your insurer may note conditions on the policy and require a higher premium for the construction period.