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Building and Energy general queries
Tel: 1300 489 099
Fax: (+618) 6251 1501
Residential building work over $20,000 must be covered by home indemnity insurance (HII) which protects owners against the risk of losing the deposit or other financial loss if the builder cannot complete the work or meet a valid claim for faulty or unsatisfactory building work because of a ‘relevant circumstance’ exists in relation to the builder.
A relevant circumstance can occur if:
A ‘relevant circumstance’ can arise if the State Administrative Tribunal (SAT) cancels a builder’s registration or the Building Services Board (BSB) does not renew such a registration. In this ‘relevant circumstance’, cancellation by the SAT or non-renewal by the BSB must have occurred because the builder failed to satisfy the financial requirements prescribed in regulations under the Building Services (Registration) Act 1991 (WA).
Residential builders, owner builders and permit authorities are reminded about their obligations and duties under the Home Building Contracts Act 1991 and related legislation regarding HII which include:
Before undertaking residential building work valued over $20,000 builders must:
Note: The Building and Energy can advise of approved HII providers. Builders who fail to obtain HII as required risk substantial penalties and disciplinary proceedings.
Before granting a building permit for residential building work valued over $20,000, the permit authority must ensure that:
QBE Insurance has published a Builders Warranty Insurance Certificate Register which can be used to confirm that the Certificate of Insurance your builder provided was issued by QBE. You can use the register to match the details on your Certificate with the QBE's records.
Where there is a change of builder during construction and before the completion of the works, for which the building permit was granted, the proposed new builder must obtain a HII certificate of insurance for the proposed building work, or the stage of building work required, and provide a copy to the owner.
It is advisable for the new builder to also provide a copy of the HII certificate of insurance to the permit authority.
Owners are encouraged to check that the new builder has HII in place for their residential building work and has given them a copy of the HII certificate of insurance.
The following is an example of a HII certificate of insurance. Approved insurance providers began watermarking these certificates in 2016.
HII is not required for associated work performed alone under separate contracts such as installation of a swimming pool, carport, and pergola or landscaping.
For more information on home indemnity insurance, refer to the Building and Energy fact sheet, call 1300 489 099 or email email@example.com.