Home Warranty Claims FAQs

Q. Doesn’t every builder have home warranty insurance?

A. The vast majority do but a number who seek to travel under the radar do not.  Those who are offering to undertake your building work and do not follow all the necessary formalities including the obtaining of a home warranty certificate are to be treated as suspect and prudence dictates that they should be avoided.

Q. What happens where a builder goes broke?

A. The purpose of home warranty insurance is to protect home owners from these circumstances under a home warranty policy which covers the death, disappearance and insolvency of the builder.  Given the treatment often metered out by insurance companies where these claims are made by home owners it is best to retain a lawyer to assist you to obtain the best possible result.

Q. Does my builder have to take out Home Warranty Insurance where the works are less than $12,000?

A. No – but it is mandatory above this figure.  It is worth noting that the builder is liable for defects below the statutory minimum.