Owner Builder Home Indemnity or Warranty Insurance is required in several states of Australia including Western Australia & Victoria. It is required when an owner builder sells their property within the Statutory Indemnity period as specified under the Building Act in their state. For example this is 7 years from the Date of Building Licence in WA and 6 years from completion date of the works in Victoria.
The cover is established to indemnify the new owner for any structural defects in the property however prior to the cover being taken the seller must obtain a property inspection report and any known defects that are highlighted in this report are excluded from the cover. As per the act there is a pre-determined excess and maximum indemnity amount per claim. The policy will cover all new purchasers of the home until the Statutory Indemnity period ends. A claim can only be honoured due to the owner builders death disappearance or insolvency.
This is a compulsory cover for all projects over $16,000 in Victoria & $20,000 in Western Australia. Failure to provide evidence of this Builders Indemnity Insurance to the selling agent can result in fines up to $10,000. The purchaser also has rights to pull out of the purchase contract prior to the completion of the contract.
Should you require this cover please go to our quick quote page or otherwise please do not hesitate to contact Competitive Insurance Solutions.
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