When completing your home renovation or extension, it is important that you engage a licensed building contractor to complete the building works. For projects valued over $3,300, this will ensure you are covered under the state’s Home Warranty Scheme.
The Queensland Home Warranty Scheme insures your building project against:
- Non-completion (provided the building contract was correctly terminated)
- Defective building work, and
- Building subsidence or settlement
The insurance premium, which is based on the ‘insurable value’ of the building works, will be included in your building contract. It must be paid by the builder, on your behalf, directly to the Queensland Building & Construction Commission (QBCC), after your building contract has been signed.
Should there be a contract variation throughout the progress of your works, where the value of the project increases by more than $5,000, your builder will need to pay an additional premium before commencing the related work. Similarly, should a contract variation decrease the value of your project, your builder can provide written notice, which may result in a partial refund of the premium paid.
The insurance policy will cover the works completed on your home for a certain period of time.
From the completion of your project, structural defects (building subsidence, non-completion) are covered for six years and six months. Whereas non-structural defects (sticking doors/windows, minor cracking of plasterboard) are covered for 12 months.
A broad range of residential building works are insurable under the Scheme, including:
- Single detached dwellings, duplexes or townhouses
- Multi-level units up to 3 storeys
- Sheds, carports and swimming pools
- Any works completed within the building envelope (e.g. repair and restoration work, plastering, painting, tiling, re-roofing and plumbing works).
It is important to note that the Home Warranty Scheme limits coverage on particular building defects and certain classes of buildings. Such works which are excluded from coverage include:
- Mixed residential/commercial projects
- A multiple dwelling greater than three storeys
- Defects caused by erosion, flood or landslip
- Defects caused by deterioration through fair wear and tear
In the event it is necessary for you to lodge a complaint to QBCC under the Home Warranty Scheme, you will need to adhere to the time limits that apply, as following:
- Structural defects - within 3 months of noticing the defects
- Non-structural defects - within 7 months of the completion date
In our state you can check if a builder is registered by contacting your local QBCC office or, via QBCC’s online licence search at http://www.qbcc.qld.gov.au/.
