Introduction to Home Owners Warranty Insurance in Australia

By November 8, 2012 Uncategorized No Comments

All Australian jurisdictions have mandatory home owners warranty insurance and each jurisdiction is regulated at state/territory level. However, each state and territory can differ on key aspects of the insurance.*

New South Wales

1. Coverage of $340,000 for each dwelling and 6 years for structural defects and 2 years for non-structural defects;
2. Excess not exceeding $250;
3. Pre-conditions for claim – three storeys or less (not including carpark) and insolvency, death or disappearance of the builder;
4. Period for notification – within 6 months of awareness.

Queensland

1. Coverage of $200,000 x no. of residential units and 6 years and 6 months from payment of premium for category one defects and 6 months from practical completion for category two defects;
2. No excess;
3. Pre-conditions for claim – three storeys or less (not including carpark);
4. Period for notification – within 3 months of category one defects becoming evident and within 7 months of practical completion for category two defects.

Victoria

1. Coverage of $200,000 for each dwelling and 6 years from completion for structural defects and 2 years from completion for non-structural defects;
2. Excess of $1000 for claims made after 5 years of completion / $750 for claims made between 3 and 5 years of completion / $500 for claims made between 1 and 3 years of completion and $Nil for claim made within 3 months of completion;
3. Pre-conditions for claim – three storeys or less (not including carpark) and insolvency, death or disappearance of the builder;
4. Period for notification – within 180 days of awareness.

ACT

1. Coverage of no more than $85,000 for each dwelling and begins at issue of building commencement notice and ends 5 years after the certificate of occupancy is issued (where the builder was not the owner of the land on which work was completed);
2. Excess not exceeding $500;
3. Pre-conditions for claim – three storeys or less (not including carpark) and insolvency, death or disappearance of the builder;
4. Period for notification – within 90 days of awareness of grounds for a claim.

* The above information is current as at 8 November 2012 and is not, and is not intended to be, legal advice. It is a summary only and should not be treated as a comprehensive review of applicable legislation.

Posted by Chris Kerin & Chanele Mao

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