Home Warranty / Builders Warranty Insurance

Insurance covering defects on newly built homes — mandatory in most states for builds over $20,000.

Home Warranty Insurance (called Domestic Building Insurance in VIC, Home Building Compensation in NSW, Home Warranty in QLD) is mandatory cover most states require builders to take out before doing residential work above a value threshold (commonly $16,000 to $20,000). It protects the homeowner against builder insolvency, death or disappearance, and defective work for up to 6 years on structural defects and 2 years on non-structural. The premium is paid by the builder and passed through to the contract price.