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builder says i dont need home warranty insurance is that right

The question, put plainly: What is home warranty insurance and when is it required?

The short answer

It covers you if a builder dies, disappears or becomes insolvent before finishing or before fixing defects. Every state has a scheme, each with its own name and its own contract value threshold.

TradieAnswers editorial · written in-house and sourced to the authorities listed below

Checked against 5 published sources, listed in full at the end of this page. How we source this

This is last-resort cover, and understanding that avoids the most common disappointment. It does not replace your rights against the builder. It responds when the builder cannot, which is a narrower set of circumstances than most people assume when they pay for it.

It goes by different names

WhereWhat it is called
New South WalesHome Building Compensation cover
VictoriaDomestic Building Insurance
QueenslandQueensland Home Warranty Scheme
Western AustraliaHome Indemnity Insurance
South Australia and TasmaniaBuilding indemnity insurance

What to actually check

  • That a certificate exists in your name, for your address, before you pay a deposit. Not a promise that it is coming.
  • That the contract value on the certificate matches your contract, including variations.
  • That the builder named on it is the entity you contracted with.
  • That the value of your contract is above your state's threshold, because below it there is no cover at all and you should know that going in.

Sources

Every source below was fetched and its response recorded on the date shown. Where a government site blocks automated clients, that is noted rather than reported as a successful check.

  1. What is icare HBCF and why do I need it? · icare NSWChecked 2026-08-11 · responded 200 OK
  2. Home warranty insurance obligations · Queensland Building and Construction CommissionChecked 2026-08-10 · responded 200 OK
  3. Building contracts · Consumer Affairs VictoriaChecked 2026-08-10 · responded 200 OK
  4. Consumer Protection · Government of Western AustraliaChecked 2026-08-10 · responded 200 OK
  5. Building Commission NSW · NSW GovernmentChecked 2026-08-10 · responded 200 OK

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