Understanding Insurable Building Work and Home Warranty Insurance in Queensland

Insurable Building Work: When undertaking residential construction projects in Queensland, it’s crucial to understand the role of home warranty insurance, especially for incurable building work. The Queensland Building and Construction Commission (QBCC) oversees the Queensland Home Warranty Scheme, which provides protection for homeowners against incomplete or defective work.

What is Home Warranty Insurance?

Home warranty insurance is a mandatory requirement for most residential building work in Queensland valued at more than $3,300 (including materials, labour, and GST). This insurance is designed to protect homeowners from financial loss if their contractor fails to complete the work or if there are defects in the construction¹.

Insurable Building Work

Insurable building work refers to construction defects that cannot be easily rectified or repaired. These defects often affect the structural integrity or overall safety of the building. Examples include significant foundation issues, major structural faults, or severe water damage that compromises the building’s stability.

Coverage Under the Queensland Home Warranty Scheme

The Queensland Home Warranty Scheme provides coverage for various types of residential construction work, including:

• Building new homes
• Extending or adding to existing homes
• Renovating or repairing homes
• Constructing residential outbuildings like garages or carports

The scheme covers up to $200,000 for incomplete or defective work, with optional additional cover available². It’s important to note that the contractor is responsible for taking out this insurance on behalf of the homeowner, and the premium is typically included in the contract price³.

Claiming Home Warranty Insurance

If you encounter insurable building work, you may be eligible to make a claim under the Queensland Home Warranty Scheme. Claims can be made if the licensed contractor fails to complete the work or rectify defects. The process involves:

1. Notifying the QBCC of the issue.
2. Providing evidence of the defect or incomplete work.
3. Allowing the QBCC to assess the claim and determine the appropriate course of action.

Importance of Home Warranty Insurance

Home warranty insurance is a vital safeguard for homeowners, ensuring that they are protected from significant financial loss due to incurable building work. It provides peace of mind and ensures that any major defects or incomplete work can be addressed without burdening the homeowner with additional costs.

For more detailed information, you can refer to the QBCC’s guide on insurable work.

If you have any specific questions or need further assistance with your construction project, feel free to ask!

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Insurable Building Work