Home Owners Warranty Insurance
The below only applies should you sell your home within a 6year period. You would then take the place of the builder.
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 $12,000 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.
If you require further information for your Owner Builder needs, please call our office on (02) 8713 1800