Home Owners Warranty Insurance – Victoria –
Home Owner Warranty Insurance Victoria
Home Owner Warranty Insurance Victoria
Owner Builder Home Warranty Insurance (Domestic Building Insurance) now called First resort Home Warranty Scheme (FHWS) is required in Victoria when an Owner Builder sells their dwelling with works done over $20,000 within the Statutory Warranty period (six years and six months).
Building Plumbing Commission (BPC) will be able to take complaints regarding major defects for up to 10 years post completion. Major defects will be covered for 6 years and non structural 2 years.
Residential Home Warranty Insurance protects the home purchaser and subsequent home purchaser from prescribed defective workmanship in the event that the owner builder dies, disappears or becomes insolvent and/or the Owner Builder fails to comply with a Rectification Order or a Directions to Rectification Order during the Home Warranty period.
What’s included in the Policy:
- Owner Builder Warranty covers the purchaser, or any subsequent purchaser, of the property for the balance of the 10 year period after the final or occupancy certificate was issued, however defects, incomplete works or second hand materials noted in the Defects Inspection Report are exempt.
Why choose BuildSafe?
- Being a Specialised Building Industry broker who has been dealing with Warranty Insurers since 1996, we have an experienced team available to help you clear up any issues with the insurer, so you you can get back to doing what you do well – building! Carmen and the team look forward to helping you with the process of Warranty Insurance.
Remember…
Before we can issue you with a policy we require the following:
- TO BE ADVISED
Let BuildSafe Insurance Brokers arrange Home Warranty, while you stay focussed on selling your home for the very best price!
FAQ's
Got a Question about Owner Builder Home Warranty Insurance? We’ve got the Answer!
The Building Act 1993, requires owner builders who sell their property to obtain Owner Builder Warranty Insurance. The insurance is to cover the purchaser in the event of faulty workmanship. The period of warranty is for 6 years from the issuing of the certificate of occupancy or certificate of final completion. For example, if the property is sold 2 years after certificates were issued, warranty insurance would be required for the remaining 4 years. You will also be required to obtain a Defect Inspection Report, these are valid for 6 months.
Owner Builder Warranty Insurance only covers defects, NOT identified in the Inspection Report.
The purchaser and any subsequent purchaser of the home. not you the actual Owner Builder.
6 years from the Certificate of Occupancy and Certificate of Final Inspection. The maximum limit of insurance is $400.000.
If Owner Builder Warranty is not obtained and your property is sold you risk fines and penalties of up to $10,000. The prospective purchaser also has the right to pull out of the sale agreement without any penalties.
A defect inspection report is required under 137B of the Building Act.
The prospective purchaser has the option under 137B (3) of the Building Act 1993 to (void) walk away from the contract anytime up to the completion of the contract – YOU LOSE THE SALE.
The period of Insurance commences from these dates for a period of six (6) years.
You can contact the Council and ask for a Form 2.10. This will list all permits and approvals issued on your home for the past ten (10) years.
Owner Builder Warranty is only required where the cost of the works is over $16,000. Below this amount it is not a legislative requirement, but you will still need to provide a Defect Inspection Report. Even if the original works did not require a permit the $20,000 threshold still applies.
No. But you still require a defect inspection report.
Yes. As the builder you have the ultimate responsibility. This is the same conditions that a registered builder works under to repair the defects.
The policy is for the protection of the purchaser in the event of the owner builder becoming bankrupt, disappearing or passing away.
Got a Question?
Have any Owner Builder questions ASK US and we will answer, no strings attached!
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