Home Warranty Insurance

HBCF compensates homeowners for losses arising from defective and incomplete work where the licenced builder or tradesperson:

• Becomes insolvent
• Dies
• Disappears
• Has their building licence suspended by the Building Commission NSW due to noncompliance with a money order made in favour of the homeowner by the NSW Civil and Administrative Tribunal or a court.

HBCF policy provides a maximum cover of $340,000 per dwelling for up to 6 years from the completion of the project for major or structural defects, and the same amount for up to 2 years from the completion of the project for minor or non-structural defects. If the homeowner becomes aware of the defects within 6 months of the end of the policy period, they have 6 more months to claim. The policy provides cover for up to 20% of the contract value if a licenced builder or tradesperson fails to complete the work, claimable for up to 12 months from the cessation of work.

The policy also covers for loss of deposit if the licenced builder or tradesperson does not start the work, claimable for up to 12 months from the failure to commence the work. Cover is provided only for outcomes relative to a specific dispute resolution process. Cover extends to subsequent purchases of the property as long as the policy is not exhausted by a prior claim.