Who pays the premium
The contractor pays the premium, which is based on the insurable value of the work, while the home owner pays for any additional cover.
Contractor pays the premium
The licensed contractor you contract to do the work (often called the principal contractor) must collect the premium from you and pay it to us on your behalf.
Depending on the type of residential construction work being carried out, a principal contractor could be a licensed contractor (e.g. a builder building a house) or a trade contractor (e.g. a carpenter installing new kitchen cabinets).
The cost of the premium is included as part of your total contract price.
The premium is calculated on the:
- insurable value of the work for single detached houses
- notional value of the work for duplexes and multiple dwellings, e.g. units or townhouses, with some exceptions.
Your contractor will calculate the premium for you based on our guidelines.
When the premium is paid
The premium must be paid:
- before work starts
- within 10 business days of signing the contract (whichever is earlier).
Once the premium is paid the QBCC will issue a notice of cover.
Optional additional cover can be bought after the standard premium is paid and:
- within 30 business days of the contract date
- before the work starts (whichever is earlier).
How the premium amount is worked out
The premium is based on the insurable value of the work. This includes GST and excludes the QBCC insurance premium.
Your contractor will calculate the correct insurance premium and add it to the cost of your project.
When the cover begins
Your insurance cover begins when the first one of these things happen:
- the premium is paid
- you enter into a contract with a licensed contractor
- a licenced contractor begins residential construction works.