Common Insurance Mistakes in Home Construction Warranty Obligations

Most registered builders and property developers now know that they require Home Warranty Insurance basically for any work over $12,000. It is enforced by local government Council or Private Certifiers, and the general rule is that they won’t release authority of works before being presented with a Certificate for Home Warranty.

However if you are a Trade it is common to go unnoticed and uninsured for Home Warranty Insurance. SHC’s research shows that up to 90% of the Trades market does not insure this aspect and therefore is in breach of legislation. The legislation is housed under the State’s Home Building Act. The basic rule here is if you’re a Tradie operating under the principle contractor and the principle contractor has supplied the home owner (client) with a Home Warranty Certificate, you do not have to supply a the same insurance. However if you’re a Tradie and are dealing with the client directly, you have to supply a Certificate of Home Warranty Insurance for any work over $12,000. Similarly if you are dealing directly with an ‘Owner Builder’, you have to supply a Certificate of Home Warranty Insurance for any work over $12,000.