Home Warranty Insurance
Home Warranty Insurance, or Home Building Compensation Fund (HBCF) as it is now referred to in NSW, covers the homeowner (and subsequent owners) where the contracted building work is incomplete or defective and the builder has either died, disappeared, become insolvent during construction or has failed to respond to a rectification order within 30 days of it being issued. The cover lasts up to 6 years from completion of the domestic building work or termination of the domestic building contract (6 years for structural defects and 2 years for non-structural).
When is Home Warranty Insurance compulsory?
Home Warranty Insurance is a statutory product, compulsory under relevant building legislation in most states for builders carrying out residential building work.
Insurance must be purchased when the value of the work being done is over $20,000.