skip navigation Skip to Navigation

Home Indemnity Insurance

Home Indemnity Insurance covers the homeowner (and subsequent owners) for completion of the building work and loss of deposit should the builder die, disappear or become insolvent within 6 years from the date of practical completion of a new home.

As from 2 July 2007, all residential building work valued over $20,000 must be covered by Home Indemnity Insurance.

Home Indemnity Insurance is not required for 'associated work', such as building only a pergola, fence or swimming pool.

It is compulsory for registered building contractors to take out a Home Indemnity Insurance policy before accepting any deposit or payment or obtaining a building permit from the local government.  The home owner must also be given a copy of the insurance certificate.

Owner-builders and builders who are building for themselves must take out a Home Indemnity Insurance policy if they wish to sell their property within seven years from the time the building permit was issued. A copy of the insurance certificate must be provided to the prospective purchaser of the home before the contract of sale is signed.

The exception to this is where an owner-builder constructs a home outside the area to which the Building Services (Registration) Act 2011 applies.

A registered builder who builds their own home is required to take out home indemnity insurance regardless of whether the home is built outside the area to which the Building Services (Registration) Act 2011 applies.

Home Indemnity Insurance can be obtained by contacting an insurance provider.

For further information please refer to the Home Indemnity Insurance Guide available to download from the Building Commission website under 'Forms & Publications'.