Home Owners Warranty
About Home Warranty Insurance
- Home warranty insurance is a vital component of a comprehensive consumer protection regime for homeowners undertaking building work in NSW.
- Home warranty insurance provides a safety net for homeowners for residential building projects where the contract price exceeds $20,000 and a builder is unable or unwilling to honour their fundamental responsibilities under the building contract, that is, to complete the construction of a dwelling or return and rectify defective work.
- If a builder is unable to honour their commitments under a contract because of insolvency, death or disappearance, the home warranty insurance scheme is there to protect homeowners.
- The scheme is also there to protect homeowners where a builder refuses to meet their contractual obligations and has been found at fault by the Consumer, Trader and Tenancy Tribunal or a court and fails to comply with a compensation (money) order in favour of the homeowner (which results in the automatic suspension of the builder's licence).
- The homeowner is not required to enforce the Tribunal order or initiate insolvency proceedings... they are able to claim on their home warranty policy.
Detailed information on the operation of the home warranty insurance scheme is available on the NSW Fair Trading website at www.fairtrading.nsw.gov.au
About the Government Insurer
- On 1 July 2010 the NSW Self Insurance Corporation became the sole home warranty insurer in New South Wales.
- The NSW Self Insurance Corporation has replaced the former insurers; QBE, Calliden and Vero.
- The NSW Self Insurance Corporation trades as the NSW Home Warranty Insurance Fund.
- The NSW Self Insurance Corporation is a part of NSW Treasury and was established in 2005.
- The NSW Self Insurance Corporation already manages the NSW Government's insurance arrangements for most classes of risk through an outsourced model.
- The NSW Self Insurance Corporation also uses an outsourced model for managing home warranty insurance. QBE Insurance (Australia) Limited and Calliden Insurance Limited operate as insurance agents of the NSW Self Insurance Corporation through a contractual arrangement.
- The Home Warranty Insurance Fund has been established by the NSW Government. Home warranty insurance premiums are deposited into the fund and claims are paid from the fund.
- There is a close working relationship between NSW Fair Trading which, under the Home Building Act 1989, is responsible for administering the operation of the home warranty insurance scheme and the NSW Self Insurance Corporation which is the home warranty insurer.
This relationship provides a link between the building dispute resolution and home warranty insurance processes which will facilitate an improved delivery of services to homeowners.
If you require further information for your Home Owners Warranty needs, please call our office on (02) 8713 1800