Owner Builder Warranty Insurance
Don’t take the risk. Make sure you meet your legal obligations and protect future purchasers.
Owner Builder Warranty Insurance is a statutory requirement in certain states when an owner builder (who is not a registered or licensed builder) undertakes domestic building works. If the value of the work, including labour and materials, exceeds the state’s specified threshold, this insurance must be purchased.
Why Owner Builder Warranty Insurance matters
There is a common misconception that if a builder is working for an owner builder, this insurance is not required. This is incorrect. Once the value of work reaches the specified amount, the requirement applies, as the owner builder is considered a consumer.
The purpose of this insurance is to protect the purchaser of the property, not the owner builder. If you decide to sell within the statutory timeframe after completing the building works, you must have an Owner Builder Warranty Insurance policy in place.
Failing to do so can result in significant fines and potential difficulties in transferring the property.
What does Owner Builder Warranty Insurance cover?
Owner Builder Warranty Insurance provides protection for the purchaser of your property in the event that:
- Defective building work is not rectified
- The owner builder dies, disappears, or becomes insolvent before rectification or completion
This ensures that future owners are not left financially exposed if building issues arise after the sale.
- When the value of domestic building work exceeds the state’s prescribed threshold
- When an owner builder sells their property within the statutory timeframe after works are completed
- When required by state legislation to facilitate property sale and protect the purchaser
How we support you
At Network Insurance House, we provide clear guidance and support to help owner builders understand their obligations and arrange the most appropriate level of cover.
- We explain the requirements based on your state’s legislation
- We help you arrange Owner Builder Warranty Insurance efficiently
- We ensure you can proceed with confidence when selling your property
