Home Warranty Insurance Explained

Home warranty insurance protects your home should you have work done over the value of $3,300. The premium is paid by the builder, and passed on to you as an upfront fee in the contract. For this reason it’s vitally important to have a signed contract with your builder – it’s a legal requirement and is your ticket to some protection should anything go wrong. The insurance company send a Certificate of Insurance before the work begins, so you know you’re covered.

Your home warranty insurance may provide protection if:

  • A licensed builder does not complete the work
  • The builder fails to fix the problem
  • The building suffers from subsidence

If the insurer pays a claim, they are then reimbursed by the builder. The insurance company provide cover for many types of claim, including:

  • A new home (not more than 3 storey high)
  • An extension, alteration, renovation or repair (not more than 3 storey high).
  • Refit of a kitchen or bathroom
  • Work on decking or a veranda
  • Structural work

Works not insured are:

  • Painting
  • Electrical work
  • Air conditioning
  • Swimming pools
  • Driveways, paths, roads
  • fences

Cover lasts a maximum of 6 years and 6 months. If the work takes longer than 6 months to complete the cover period can be extended.
That’s the basics of Home Warranty Insurance in Queensland, for more information give me a shout, or take a look at The Queensland Building and Construction Commission website.

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