Builders Warranty Insurance or Home Indemnity Insurance varies from state to state in Australia but it is a legal requirement for licensed builders for all your residential building works.
The policy will be in the name of the owner so that if the owner sells the residence within the six year insurance period, the benefit of the policy will pass to a subsequent owner(s).
Subsequently, a registered building contractor building their own principal place of residence must also obtain the warranty if they sell within seven years from the date the building permit was granted.
The insurance protects owners against financial loss if a builder cannot complete residential building work or meet a valid claim for faulty or unsatisfactory building work because of death, disappearance or insolvency.
There are often conditions and set policy terms which apply, so contact an Avoca Insurance Broker to discuss your specific insurance needs.
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