What Insurance does a builder require?
When a builder undertakes domestic building work beyond a certain value (usually $12,000), they must obtain Warranty Insurance (sometimes called Builders Warranty Insurance or Home Indemnity Insurance). This insurance is required by law and protects you against major defects in the builder’s work or the builder’s bankruptcy. In most cases, the insurance covers non-completion of building works or structural defects (for up to six years) and non-structural defects (for up to two years); although this differs from State to State. The insurance certificate identifies you (as the property owner), the builder and the insurer and gives the address and description of the building works. You will generally only be provided with a copy of our Warranty Insurance after you have entered into a contract.