Home warranty insurance explained, state by state
What each state's scheme covers, when your builder must have it in place, and what changed in Victoria, South Australia and the ACT.
Home warranty insurance covers homeowners when a builder cannot finish the work or fix defects. Your builder must arrange it for residential jobs over $3,300 in Queensland, over $20,000 in NSW, Victoria and WA, $20,000 or more in SA, $12,000 or more in the ACT and $25,000 or more in the NT. Maximum cover ranges from $200,000 to $400,000. Tasmania has no scheme.
What is home warranty insurance?
Home warranty insurance protects you, the owner, if your builder cannot finish the job or fix defects. The builder takes it out for each job, and it protects your home, not the builder's business. In Queensland, NSW, WA, SA and the ACT the cover also passes to later owners of the home.
Most states run it as last resort cover: it only pays if the builder has died, disappeared or become insolvent (and in NSW, had their licence suspended for not paying a money order). Queensland and, since 1 July 2026, Victoria offer first resort cover, which can pay when the builder simply won't finish or fix the work. That difference matters more than the dollar limit.
Home warranty insurance by state
| State | Scheme name | Required for | Maximum cover | Type |
|---|---|---|---|---|
| QLD | Queensland Home Warranty Scheme (QBCC) | Residential work over $3,300 | $200,000 per category of loss ($300,000 with optional extra cover) | First resort |
| NSW | Home Building Compensation Fund (icare HBCF) | Residential work over $20,000 | $340,000 per dwelling | Last resort |
| VIC | Home Warranty insurance (BPC) | Domestic work over $20,000 on homes of 3 storeys or less (contracts from 1 July 2026) | $400,000 per home | First resort |
| WA | Home Indemnity Insurance (HII) | Residential work needing a building permit, over $20,000 | $200,000 for incomplete or defective work; deposit loss up to $40,000 | Last resort |
| SA | Building Indemnity Insurance | Domestic work needing council approval, $20,000 or more | $250,000 (contracts from 10 November 2025) | Last resort |
| ACT | Residential building work insurance, or a fidelity fund certificate | Residential work of $12,000 or more on class 1 or 2 homes up to 3 storeys | At least $200,000 | Last resort (includes subsidence from the builder's negligence) |
| TAS | None in force | Not applicable | Not applicable | Statutory warranties only |
| NT | Residential building insurance, or a fidelity fund certificate | Residential work of $25,000 or more on a house or prescribed class 2 building | At least $200,000 | Last resort |
As at 26 October 2026, from each state regulator. Thresholds include GST where the regulator says so (Queensland and NSW). Policy wording sets the detail of what each scheme pays, so read the certificate and product disclosure statement you are given.
Who arranges it, and when?
The licensed builder arranges it, every time. You should not have to shop for it, but you must check you have it before any money changes hands.
- Queensland: the builder collects the premium from you and pays it to the QBCC before work starts.
- NSW: the builder buys cover from icare HBCF and must give you the certificate before starting work or taking any money, including a deposit.
- Victoria: the registered builder takes out cover after the major domestic building contract is signed, within 10 business days or before work starts, whichever is first. You receive a notice of cover.
- WA: the builder takes out HII in your name and gives you the certificate before starting work or taking any payment.
- SA: the builder arranges and pays for it before work starts and gives you a certificate of insurance.
- ACT: the builder must lodge the policy or fidelity certificate with the application to the certifier for a building commencement notice.
- NT: the builder must give you the policy or fidelity certificate before starting work or asking for any payment.
If a builder asks for a deposit before you hold a certificate in a state that requires it, treat that as a serious warning sign.
When does home warranty insurance pay out?
It pays when the work is incomplete or defective and the builder can't, or in first resort states won't, put it right. Typical triggers:
| Situation | First resort (QLD, VIC) | Last resort (NSW, WA, SA, ACT, NT) |
|---|---|---|
| Builder becomes insolvent or dies | Covered | Covered |
| Builder disappears | Covered | Covered |
| Builder is still trading but won't fix defects | Can be covered | Not covered while the builder is still trading |
| Builder walks off the job | Can be covered | Usually only if a trigger above also applies |
| Subsidence | Covered in QLD | ACT covers subsidence caused by the builder's negligence |
In Victoria, the new cover can pay for major defects for up to 6 years and other defects for up to 2 years after the work is completed. In SA, defect claims usually run up to 5 years after completion. In the ACT, cover lasts at least 5 years, and you must claim within 180 days of becoming aware of the problem.
Cover can also be lost through your own actions. QBCC warns that paying more than the contract says, or paying early, can reduce what the scheme pays. Cost plus contracts in Queensland get no non-completion assistance at all. See our contract types guide for why.
What changed in 2025 and 2026?
Since January 2025, Victoria, SA and the ACT have all changed their schemes, so older articles may quote the wrong figures.
- ACT, 1 January 2025: minimum cover rose from $85,000 to $200,000, and the time to claim after becoming aware of a problem doubled from 90 to 180 days.
- Victoria, 1 July 2025: the Building and Plumbing Commission replaced the Victorian Building Authority and took over domestic building insurance from the VMIA.
- SA, 10 November 2025: the threshold for Building Indemnity Insurance rose from $12,000 to $20,000, and maximum cover rose from $80,000 to $250,000.
- Victoria, 1 July 2026: first resort Home Warranty insurance replaced last resort domestic building insurance for new contracts. The threshold rose from $16,000 to $20,000 and maximum cover from $300,000 to $400,000. Contracts signed before 1 July 2026 stay under the old cover.
- WA, 1 July 2026: the registered builder threshold for sheds, garages, carports and patios rose to $50,000. The $20,000 HII threshold for homes did not change.
Does Tasmania have home warranty insurance?
No. As at October 2026 Tasmania has no compulsory home warranty insurance. Parliament passed the Residential Building (Home Warranty Insurance Amendments) Act 2023, but it has not commenced. Tasmanian owners rely on statutory warranties, which last 6 years from practical completion and pass to later owners.
That makes the builder's own financial health more important in Hobart than anywhere else. Keep the deposit within the legal cap (10% for contracts of $20,000 to under $50,000, 5% for $50,000 or more), pay only for completed work, and check the licence on the Tasmanian register before you sign.
How do you check you are covered?
- Ask for the certificate before paying a deposit, and check your name, the site address and the contract price.
- Check the builder's name on the certificate matches the licence and the contract. Our licence check guide shows where to look.
- Keep the certificate with the contract. You will need it to claim, and so will a buyer if you sell.
- Notify the insurer early. In NSW, tell the HBCF insurer in writing as soon as defects or incomplete work appear.
Common questions
Who pays for home warranty insurance?
The builder arranges the policy in every state, so you never buy it yourself. In Queensland the builder collects the premium from you and pays it to the QBCC. In SA the builder pays for it before work starts. Either way it is a cost of the job, so ask whether it is included in the quoted price.
Do I need home warranty insurance for a renovation?
Yes, if the renovation is residential building work above your state's threshold. That is over $3,300 in Queensland, over $20,000 in NSW, Victoria and WA, and $20,000 or more in SA. In the NT, cover applies to work of $25,000 or more, including extensions.
How long does home warranty insurance last?
It depends on the state and the defect. Victoria's Home Warranty cover runs up to 6 years for major defects and up to 2 years for other defects. In SA, defect claims can usually be made up to 5 years after completion, and ACT cover lasts at least 5 years, with claims due within 180 days of noticing the problem.
What is the difference between first resort and last resort cover?
Last resort cover only pays if the builder has died, disappeared or become insolvent. First resort cover, used in Queensland and in Victoria from 1 July 2026, can also pay when a builder who is still trading won't finish the work or fix defects.
Does home warranty insurance cover commercial building work?
No. Every state scheme is limited to residential work. Queensland's scheme, for example, does not cover commercial work or multi-unit buildings more than 3 storeys above a car park. Commercial clients rely on the contract, security and their own insurance.
Sources
- QBCC: What is home warranty insurance
- QBCC: Maximum amounts covered
- QBCC: Who pays home warranty and when
- QBCC: Deposits and progress payments
- QBCC: Cost plus and construction management contracts
- NSW Government: Insurance requirements for contractors working on your home
- icare: Home Building Compensation Fund
- NSW Government: Resolving building disputes
- BPC: Home Warranty
- BPC: New BPC putting consumers first from day one
- Consumer Affairs Victoria: Domestic building insurance and insolvency
- WA Government: Home indemnity insurance fact sheet (PDF)
- WA Government: Do I need to be a registered building contractor? (PDF)
- SA Government: Building indemnity insurance
- Building Work Contractors (Building Indemnity Insurance) Amendment Regulations 2025 (SA)
- ACT Planning: Residential building work insurance
- Building (General) Regulation 2008 (ACT)
- Building Act 2016 (Tas), authorised version as at 5 June 2026
- Building Standards Tasmania: Consumer building information
- Residential Building Consumer Guide, July 2024 (Tas, PDF)
- NT Government: Residential building insurance