What is Home Building Compensation Cover (HBCC) or Home Warranty Insurance?

It is insurance that protects a home owner if a licensed builder or trade does not complete or fix work, and the rules and name differ by state, for example home building compensation cover in NSW and home warranty insurance in Queensland. Names and schemes can change, so check your state's current scheme. It generally applies to work done by a licensed contractor above a set value, and it is often a last resort cover that applies in limited circumstances. It does not generally cover an owner builder's own work. In NSW, home building compensation cover is not available for owner builder work itself, in Queensland owner builders cannot access the Queensland Home Warranty Scheme, and in South Australia owner builders cannot take out building indemnity insurance. Do not assume the rule in one state applies in another. If you hire a licensed contractor, ask for the certificate before work starts and before you pay.

In MyBuildHub: save each certificate against the matching contract, and set a Task to collect it before the first payment.

Check yourself: NSW, Victoria, QBCC, and your state scheme.

General information only. It is not financial, tax, insurance or legal advice and may not apply to your project. Speak to your lender, accountant, insurer or a lawyer, and confirm requirements with your state regulator.