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:
- Home Indemnity Insurance Fact Sheet
- Eligibility Application – Builders with up to $5m in annual turnover
- Eligibility Application – Builders with greater than $5m in annual turnover
- Home Indemnity Application for Job Specific Policy
- Home Indemnity Application for Job Specific Policy for Multi-Unit Developments
- Home Indemnity Eligibility Review Application
- Home Indemnity Certificate Cancellation/Variation Application Form
- Notice of Completion Form
- Home Indemnity Insurance Policy WA
General Advice Warning
The information contained within the website is of a general nature only. Whilst every care has been taken to ensure the accuracy of the material, Cowden Limited will bear no responsibility or liability for any action taken by any party on the purported basis of information contained herein. Users should satisfy themselves of the appropriateness of the information to their relevant circumstances before taking any action.
Third Party Links
This website contains links to third party sites. Cowden Limited makes no warranties or representations regarding the condition or the content of those sites, and do not indicate any endorsement or approval of those sites, their information handling practices or the products and/or services provided on them. It is the responsibility of users to make their own decisions about the accuracy, reliability and correctness of the information at those sites. Cowden Limited shall not be held liable for any incident or consequential damages resulting from use of the material.