Home Warranty Insurance

Protecting Domestic Builders

Home Warranty insurance is the mechanism by which Australian state or territory governments establish a level of protection for consumers of domestic building work. If you are a licenced builder, it is likely you have a statutory requirement to purchase Home Warranty insurance for all but your smallest jobs. Whilst legislation specifics differ state to state, all seek to protect your customers from your:

  1. Failure to rectify defective workmanship; and/or
  2. Failure to complete the building work as a result of your death, disappearance or becoming insolvent.

If Home Warranty insurance is required, it must be purchased by the Builder at the time they enter into a building contract.


Some states demand a Letter of Eligibility be obtained by the builder from an insurer to support their continued registration or licensing. This is an assessment by the insurer of a builder’s solvency to help determine whether or not the insurer will issue any insurance or not to the builder.

Network Insurance Group prides itself on its ability to undertake Eligibility Assessments efficiently and can let a builder know promptly if they are likely to succeed in obtaining Home Warranty insurance.