QLD Builders Warranty Explained for Buyers

Building a house or an extension to a home is an exciting yet significant investment. There are a number of factors that go into a building project - not all can have a positive result.

The Queensland Building and Construction Commission (QBCC) administered the Queensland Home Warranty Scheme through the Queensland government. This Scheme is a builder's warranty insurance that covers the property and the homeowner in the case where contracted work has defects or is unfinished.

Whether you are building a new home or adding an extension to your home in Queensland, the builder’s warranty provides confidence, ensuring you aren’t left out of pocket if things go wrong with the project.

What is the builders' warranty insurance in QLD?

The Queensland Building and Construction Commission (QBCC) Home Warranty covers the construction phase of a project. If the project is not finished or has defects, you can claim up to $200,000 under the builder's warranty.

The building warranty covers homeowners for any building work valued over $3,300, including the cost of materials, labour, and GST. It lasts for a period of 6 years and 6 months from the date you pay the premium, agree to a contract, or work starts (whichever is first), and cannot be renewed once expired.

Claims of defective or unfinished work must be submitted within certain time frames, depending on the type of claim:

• Non-completion claims must be lodged within 3 months after the contract ends.
• Structurally defective work claims must be made within 3 months from the day you are aware of the structural defects.
• Non-structurally defective work claims must be made within 7 months after the day the work is complete.

What does the QLD builders warranty cover?

Under the Queensland Home Warranty Scheme, the property is covered if any building work is defective or incomplete for residential construction projects. The insurance covers fixed-price residential contracts for non-completion claims and defective work claims, and cost-plus residential contracts for defective work claims.

A non-completion claim covers the homeowner if the contractor does not or cannot finish the work they were contracted for. Once the claim has been accepted for non-completion of work, the claim remains valid even if the property has been damaged by fire, storm, vandalism, or theft.

A defective work claim covers the homeowner if the contractor does not fix defects found during or after the building process.

Once the insurance claim is paid out, the Queensland Building and Construction Commission (QBCC) will recover the amount paid to finish or fix the work from the contractor. 

Is builders' warranty insurance a legal requirement in QLD?

Yes, the builders' warranty insurance is a legal requirement for all residential building projects valued over $3,300 in Queensland.

This building warranty insurance is paid as part of the building or renovation contract by the licensed builder. The builder will also submit proof of this insurance to the local council as part of the development application.

All homeowners will obtain a copy of the builder's warranty insurance certificate when the building contract is signed with the builder. This certificate is required to make a claim, so keep it in a safe place. 

The builder's warranty is administered by the Queensland government through the Queensland Building and Construction Commission (QBCC).

For over 20 years, Cougar Homes has been North Queensland’s most trusted home builder. We deliver high-quality homes across Cairns, Townsville, and Mackay, helping homeowners understand the QBCC Home Warranty Scheme and their property coverage. Our builders follow the proper building standards for every project we work on, including obtaining the QBCC builders' warranty and certificates on your behalf. If you are building a new home in Queensland, contact our team today, and we’ll provide a free quote within 24 hours.