Home warranty insurance verified.
A last-resort scheme, not a defect warranty.
Home warranty insurance — called Home Warranty in Victoria (for contracts from 1 July 2026), Home Building Compensation (HBC) in NSW, and Home Warranty Insurance or Home Indemnity Insurance in other states — is a statutory requirement for most residential building contracts above a threshold value. Victoria's previous scheme, Domestic Building Insurance (DBI), remains in place for contracts signed before 1 July 2026.
In most states the insurance operates as a "last resort" — it only pays out if the builder is unable to fix defects or complete the work due to death, disappearance, insolvency or licence cancellation. It does not cover disputes where the builder is still trading and able to rectify. Victoria's new Home Warranty Scheme (contracts from 1 July 2026) broadens the trigger: a claim may be available where the builder is unable or unwilling to complete or rectify, including after failure to comply with a Building and Plumbing Commission (BPC) rectification order.
The policy attaches to the property, not the homeowner. It follows the land title and can be claimed by a subsequent owner within the policy period.
Builder dies before completing or rectifying defects
Builder disappears (absconded)
Builder becomes insolvent — enters liquidation, voluntary administration or receivership
Builder's licence is cancelled after work starts
Disputes where the builder is still operating
Work the builder disputes or declines to fix
Defects the builder agrees are their responsibility but won't attend to
Disputes about contract variations or additional costs
Poor workmanship where the builder is contactable and solvent
State schemes and thresholds.
Each state and territory operates a separate scheme with different thresholds, administrators and coverage periods. The threshold is the minimum contract value above which the builder is required to hold a policy before works start.
Home Building Compensation (HBC)
NSW State Insurance Regulatory Authority (SIRA)
The NSW Home Building Compensation Fund (formerly HomeWarranty Insurance) is a last-resort insurance scheme. The insurer of last resort is SIRA. The builder must be licensed and the contract value must exceed $20,000. Check via the icare HBC portal.
Home Warranty (from 1 July 2026)
Building and Plumbing Commission (BPC)
From 1 July 2026, Home Warranty replaced DBI for new eligible work under contracts signed on or after that date. Threshold rose from $16,000 to $20,000; maximum cover increased from $300,000 to $400,000 (Building (Statutory Insurance Scheme) Regulations 2026). Unlike other states, a claim may be available where the builder is unable or unwilling to complete or rectify, including after non-compliance with a BPC rectification order. Contracts signed before 1 July 2026 remain under the DBI scheme (VMIA).
Queensland Home Warranty Scheme
Queensland Building and Construction Commission (QBCC)
The QBCC administers the Home Warranty Scheme. A premium is collected by the QBCC when the contract is registered. Cover activates on completion for defects or non-completion. Search via the QBCC warranty search tool.
Home Indemnity Insurance (HII)
Building and Energy (DMIRS)
Mandatory for residential work exceeding $20,000. The builder must take out HII before work commences. Approved insurers operate commercially; the state guarantees claims in the event of insurer failure.
Building Indemnity Insurance (BII)
Residential building indemnity — approved private insurers
Mandatory for residential building work over $12,000. The builder must hold a current policy. Cover attaches to the property and follows the land title.
Home Warranty Insurance
Private approved insurers
Required for residential building work over $20,000. The policy must be in place before a deposit is taken.
Residential Building Work Warranty (RBWW)
Private approved insurers
Required for residential building work valued at more than $12,000. The builder must issue the warranty certificate to the owner before work starts.
Home Building Warranty
Statutory warranty under the Building Act 1993
In the NT, home building warranties are statutory obligations rather than a separate insurance scheme. The builder is obligated to rectify defects for set periods. Private home warranty insurance is optional.
How to verify a policy before paying a deposit.
In most states, the builder is required to provide you with a certificate of insurance before taking any deposit or before work commences — whichever is earlier. In some jurisdictions, the builder is only required to have the policy in place before starting work, not before signing.
NSW: Before the builder takes any money under a contract, they must give you a certificate of insurance under the Home Building Compensation Fund. You can verify the certificate is genuine using the icare portal.
VIC: For contracts signed on or after 1 July 2026, the builder must hold a Home Warranty policy under the new scheme. For contracts signed before that date, DBI under the VMIA scheme applies. Confirm which applies to your contract. If unsure, contact the BPC directly.
QLD:The QBCC retains the record of the warranty. You can search the QBCC website using the builder's QBCC licence number or ABN.
Ask the builder for a copy of the insurance certificate before signing the contract
Check the certificate names the correct property address and the same legal entity as your contract
Verify the certificate is current and the policy period covers the expected construction period
Where the state provides a portal, enter the certificate number to confirm it is genuine
If the builder cannot produce a certificate, ask why before proceeding — they may not yet be eligible for cover, which would prevent you from getting insurance