Home indemnity insurance (HII) protects against financial loss if a builder cannot complete residential building work or meet a valid claim for faulty or unsatisfactory building work because a ‘relevant circumstance’ exists in relation to the builder.

A relevant circumstance can occur if:

  • the builder is an individual and the builder dies, disappears or becomes insolvent; or
  • the builder is not an individual, such as a corporation, and the builder ceases to exist or becomes insolvent.

A ‘relevant circumstance’ can arise if the State Administrative Tribunal (SAT) cancels a building services contractor registration, or the Building Services Board (BSB) does not renew such a registration. In this ‘relevant circumstance’, cancellation by the SAT or non-renewal by the BSB must have occurred because the builder failed to satisfy the financial requirements prescribed in regulations under the Building Services (Registration) Act 1991 (WA).

In most instances, the insurance policy must cover the residential building work during the construction period and for six years from the date of ‘practical completion’ (the six-year insurance period). Practical completion is when the building, extensions or renovations are completed and ready for occupation.

The Act applies to all areas of the State; however, the provisions of the Act are different when a person builds, extends or renovates their own home as an owner builder, or a builder seeks exemption to build their principal place of residence.

For the latest information please contact Bruno Rocha in our office on 0419 149 043 or visit the Department of Commerce website: https://www.commerce.wa.gov.au/publications/home-indemnity-insurance

Links for application forms and supporting documentation are as follows:

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