Home Warranty Insurance

Home Warranty insurance is the way in which the State & Territory governments ensure protection for consumers for domestic building work. If you are a licenced builder, it is a requirement (statutory) to provide Home Warranty insurance to your domestic/residential clients for all work under over the prescribed amount. Whilst in different states and territories the legislation may differ, the intention is the same, which is to  protect your client from your:

  1. Failure to rectify defective workmanship; and/or
  2. Failure to complete the building work as a result of your death, disappearance or becoming insolvent.

If Home Warranty insurance is required, it must be purchased by the Builder at the time they enter into a building contract.


In some states a Letter of Eligibility MUST be obtained by the builder from an insurer for ongoing registration and licensing purposes. This assessment undertaken by the insurer determines the builder’s ability to meet their debts and manage the project or job they are applying for and from the insurer will decide if they can or will issue any insurance to the builder. Generally the guidelines for the eligibility are set by the relevant state of territory authority

InsureX  can assist you with Eligibility Assessments efficiently partnering with Savill Hicks Corp Pty Ltd  for Savill Hicks who provide Home Building Compensation insurance.

Assessment can be onerous and complex. We are committed to service, to  simply the process and aim for  the best timely  outcome. Time is money , so don’t let this process slow your work progress, we can help.


A frequent misunderstanding occurs when a builder is contracted to work for an owner builder and the contracted builder assumes they do not need to purchase this insurance. This is not the case. If the value of the contracted work (which includes materials and labour) is in excess of the amount specified by the relevant state or territory authority then warranty insurance must be purchased as the owner builder is considered a consumer.

If an owner builder purchases the materials required for the work, the licenced builder must still include the cost of those materials when determining whether or not the work requires Home Warranty insurance. Similarly if a builder is charging an hourly rate they must, by law, provide the owner builder with a reasonable estimate of the cost of their services for the work prior to commencing any work. If the cost of those services plus the cost of the materials they will be using exceeds the prescribed amount then warranty insurance is required.