When does a Queensland contractor need home warranty insurance?

Who takes out the cover

The licensed contractor who contracts with the homeowner, often called the principal contractor, collects the premium from the owner and pays it to the QBCC on the owner's behalf. A principal contractor can be a builder constructing a house or a trade contractor, such as a carpenter installing new kitchen cabinets.

A subcontractor to a principal contractor does not pay a premium, because the principal contractor lodges one premium covering all work under the contract. No premium is payable for work for an owner-builder who has a permit for it, but check the permit covers the work, as you may be obliged to insure if it does not.

Sources[1]

Which work counts

Most residential building work above $3,300 is insurable, including new homes, renovations, kitchen and bathroom work, roofs, decks and pools. Work on its own that the QBCC says needs no cover includes driveways, paths, fences, air conditioning, hot water systems, security doors and grilles, and landscaping. Done as part of a bigger project, those items are covered for non-completion only, not defective work.

Commercial work, mixed residential-commercial projects and multiple-unit dwellings more than 3 storeys above a car park cannot be insured through the scheme.

Sources[2]

Timing and the contract price

Pay the premium before the earlier of work starting or 10 business days after signing the contract. The premium goes into the contract price and the deposit, and any deposit stays within the legal maximum.

Sources[1]

Quote preflight you can copy

This is our suggested checklist, not a QBCC form. Run it before the quote goes out.

HOME WARRANTY PREFLIGHT: QUEENSLAND

Job and site: [address]
Building type: [house / unit / outbuilding / other]
Work: [description]
Total labour + materials + GST (including materials supplied by others): $[amount]
Over $3,300? [yes / no]
Standalone driveway, path, fence, air conditioning, hot water, security door or landscaping only? [yes / no]
Commercial, mixed use or over 3 storeys above a car park? [yes / no]
I contract directly with the owner? [yes / no, subcontractor to: name]
Owner-builder? [yes / no, permit sighted and covers this work: yes / no]
Premium included in contract price and deposit: [yes / no]
Premium due by: [earlier of work start date or 10 business days after signing]
Checked by: [name, date]

Sources[1][2]

Common questions

Who pays QBCC home warranty insurance?

The licensed contractor who contracts with the homeowner collects the premium from the owner and pays it to the QBCC on the owner's behalf. A subcontractor does not pay, because the principal contractor lodges one premium covering all work under the contract.[1]