Insurance ebook

Home Warranty Insurance - A Must for Builders & Contractors

Home Warranty Insurance is a state-regulated insurance that must be taken out by builders, renovators and contractors who complete residential construction projects over a specific dollar amount. Home Warranty insurance protection must be taken out before you commence work on your project.

  • In Australia, each state has a different threshold that determines when Home Warranty insurance becomes compulsory:
  • In NSW, if your residential project exceeds $20,000, you will need to take out Home Warranty insurance
  • In most other states, such as QLD, VIC, SA and WA, this threshold is $12,000
  • At present, Tasmania is the only state where Home Warranty is optional

The Benefits of Home Warranty Insurance

Home Warranty insurance does not benefit you directly as the builder. Instead, it serves to financially protect the homeowner (your client) in case you produce any defective work and if circumstances arise (insolvency, death) that prevent you from finishing the agreed work.

Any future homeowner of that property is also protected for a statutory period (usually 6-7 years).

For builders and tradies, however, there are many positive aspects of taking up mandatory Home Warranty insurance:

  • Establish yourself as a professional and trustworthy builder who obeys regulations
  • Gain more business – most clients won’t hire you without Home Warranty insurance
  • Avoid harsh penalties from the government – fines can reach into the thousands

Taking Out Home Warranty With Trades Ensurance

Trade Ensurance is one of the most respected Home Warranty insurance providers in Australia. We fully understand the Home Warranty requirements in each state and our experienced experts can provide you with the right advice when it comes to meeting Home Warranty regulations.

Trades Ensurance offers:

  • Fast and easy application process – our Home Warranty specialists will guide you through the process.
  • Cheap application and processing fees to help you save $$
  • 24/7 online access to your Home Warranty Insurance Certificate and renewals
  • Advice from our Home Warranty insurance specialists who can simplify the process and answer your questions
  • Home Warranty Insurance is part of the Building Act and is legislation for consumer protection. It is compulsory and attracts large fines if not correctly purchased.

To get a Home Warranty Quote and learn more about your Home Warranty requirements, contact us on 1300 550 665 or

Are you an Owner Builder looking for Home Warranty Insurance? Learn more here.


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