NSW Home Warranty - Important changes effective November 2011

NSW Owner Builder Home Warranty  insurance scheme is an integral element of the NSW government consumer protection strategy. Owner Builder Warranty is designed to provide a safety net to the purchaser of an owner built home or residential construction. Home Warranty is designed to protect the purchaser (not the Owner Builder) where an Owner Builder is unable, unwilling to fulfil their legal obligations to the purchaser or fails  to repair defective work because of death, disappearance or insolvency.

The objectives of the NSW Home Warranty Scheme are:

To provide a safety net for purchaser (buyer) of an owner built home where the Owner Builder (the vendor) is unable or unwilling to return and repair defective works

Minimize unnecessary disruption to the Owner Builder residential construction segment and ensure a consistent approach to protecting consumers

To contribute to the improvements in standards of Owner Builder works

Why choose BuildSafe?

Quick Turnaround. Paperwork is processed quickly and efficiently as our service includes urgent response facilities

Skilled, experienced and resourced to manage your file. We specialize in more complex cases.We know the urgency - its selling your home for best price.

Less stress and hassle. Our underwriting and service support package provides you with peace of mind, easy policy completion and follow up support and advice.

Our Experience. BuildSafe and our sister company, Australian Owner Builders have been helping Owner Builders since 1987. We have the proven track record and know all the pitfalls and their solutions.

Most asked Questions and Answers

What is Owner Builder Warranty Insurance?
Owner Builder Warranty Insurance is a compulsory insurance required by the Home Building Act 1989 from May 1st, 1997. The legislation requires all Homeowners who intend to sell their home within 6 years of completion of any work under an Owner Builder permit to provide an Owner Builder Warranty Insurance policy for the benefit of the purchaser of the property.

The legislation applies to any residential building work undertaken by an Owner Builder, over $12,000 in value, where an Owner Builder permit was issued. This insurance only applies where the Owner Builder work is to be sold within 6 years of completion and is not required if the Owner Builder does not sell the property within this period.

What does the Insurance Cover?
The insurance provides the purchaser (& 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.

What Doesn't the Insurance Cover?
The insurance does not cover claims arising from:

• Fair wear and tear or failure of the homeowner to reasonably maintain the works.
• Commercial construction work or commercial use of the work.
• Defects that are identified in the inspection report which is undertaken prior to the issue of the Contract of Insurance.
• Appliance or apparatus that are outside the manufacturers warranty period, or if no warranty period exists, the reasonable lifetime of the appliances or apparatus.
• Defects which the purchaser should have reasonably been aware of at the time of purchase.
• Acts of nature.

BuidSafe Owner Builder Warranty Period of Insurance
The prescribed Owner Builder Warranty Insurance commences from the date of the Contract of Sale and expires 6 years after the date of completion of the Owner Builder work. The maximum limit of liability is $300,000 per job.
The legislation allows for a $500 excess to apply to the purchaser of the property for each claim made.

Why do I need and who do I call for an Inspection Report?
It's required by the insurance company for underwriting purposes. Freecall 1800 019 233 for your nearest inspection service

What happens if an Owner Builder sells and doesn't have Owner Builder Warranty Insurance?
An Owner Builder, who sells within 6 years of completion of works and fails to obtain Owner Builder Warranty Insurance, or attach an insurance certificate to the Contract of Sale, can face a fine of up to $22,000.

If a Contract of Sale has been entered into without Owner Builder Warranty Insurance, the contract can be voided by the purchaser at any time before completion of the contract.

Policy turnaround times.

• Standard Turnaround – 24hrs
• Express Service – 4 hrs
• Super Express Service – 1hr

Times are based on receipt of Application with supporting documents.

Be Sure Be Safe Build Sure BuildSafe

For a Warranty Insurance Proposal Form - Click here

For a list of Accredited Building Inspectors - Click here

For a Warranty 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