Builders Warranty Insurance - Business Insurance Broker
Residential Builders' Warranty Insurance
Why do licensed builders require residential builders warranty insurance?
Licensed Builders require a Letter of Eligibility from an insurer in order to renew and meet their license requirements (which may vary depending on the State Legislation). Licensed Builders must provide Residential Builders' Warranty Insurance to their clients for all residential contracts in excess of $12,000.
What does residential builders' warranty insurance cover?
Residential Builders' Warranty Insurance protects the person on whose behalf work is to be done and the subsequent homeowners for loss or damage resulting from non-completion of the work or breach of statutory warranty because of death, disappearance or insolvency of the builder. Certain limitations apply when building more than 3 dwellings upon the one site.
Residential Home Owner Builders' Warranty Insurance
Why do I need home owner builder insurance?
All owner builders need to be aware that in order to sell a property (within 6 years after construction or alteration completion) that the individual State Legislations require all owner builders to provide Residential Owner Builder Insurance for the benefit of the purchaser. In most cases the property is sold after the Occupancy Certificate has been issued and the owner builder has purchased Residential Owner Builder Insurance.
What does residential home owner builder insurance cover?
Residential Owner Builders' Warranty Insurance protects the purchaser and subsequent homeowners for prescribed defective workmanship if the owner builder dies, disappears or becomes insolvent.
What is my liability as an owner builder?
The State Legislation and the Residential Owner Builder Insurance Policy wording outlines the full extent of the Owner Builder liability for breaches of the statutory warranties.
The state legislations (as denoted below) govern the requirements of owner builders with regard to selling their properties and obtaining Residential Owner Builder Insurance.
- Victoria - Building Act 1993 and Domestic Building Contracts Act 1995
- New South Wales - Home Building Act 1989
- Western Australia - Home Building Contracts Act 1991
- Tasmania - Housing Indemnity Act 1992
- South Australia - Building Work Contractors Act 1995
- Australian Capital Territory - Building Act 2004
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