Owner Builder Home Indemnity InsuranceWhat is it? It is a compulsory insurance required by the Home Building Contracts Act 1991 (WA). What does it cover? The insurance provides the purchaser (and subsequent purchasers) with cover for the Statutory Warranties provided in the Act. It is important to note that a claim can only be made under this policy if the Owner Builder dies, disappears or becomes insolvent. Otherwise, it is the Owner Builders responsibility to rectify any faults that are not listed as defects, incomplete works or second hand materials under the defect report. Who should have it? The legislation applies to any residential building work undertaken by an Owner Builder, over $12,000 in value. This insurance only applies where the property is sold within 7 years from the Building License date in Western Australia. It is not required if the Owner Builder does not sell the property within this period. Period of Insurance? Home Indemnity Insurance commences from the Building License date and extends for 7 years. The maximum limit of indemnity is $100,000. What happens if an Owner Builder sells without Owner Builder Indemnity Insurance? An Owner Builder that sells within 7 years from the Building License date and fails to obtain Owner Builder Indemnity Insurance, or attach an insurance certificate to the Contract of Sale, can face a fine of up to $10,000. If a Contract of Sale has been entered into without Owner Builder Indemnity Insurance, the purchaser can void the contract at any time before completion of the contract. What we need... ![]()
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For a Indemnity Insurance Proposal Form - click here For a List of Accredited Inspectors List - click here For a Indemnity Insurance Product Disclosure Statement & Policy Wording - click here Before making a decision about any of our products, please read our Financial Services Guide - click here |
