Builders Warranty

Important Note:

For all relevant forms to be filled in, see the blue box on your right called  'Builders Warranty Forms'

Require Assistance:

Phone: 02 8935 1550 orEmail: This email address is being protected from spambots. You need JavaScript enabled to view it.

In January 2015, the Home Warranty Insurance Scheme (HWIF) had been renamed as the Home Building Compensation Fund (HBCF). This name change reflects the function of the Fund as the consumer protection regime for homeowners undertaking residential building projects in NSW where the contract price exceeds $20,000. 

icare (Insurance and Care NSW) was created in September 2015 through the commencement of the State Insurance and Care Governance Act. icare is a Public Financial Enterprise governed by an independent Board of Directors that delivers insurance and care services to the people of New South Wales. The HBCF, Self Insurance Corporation (SICorp) along with other like agencies such as the Workers Compensation Nominal Insurer, Lifetime Care and Support, Sporting Injuries Compensation and the Dust Diseases Authority have joined icare. 

More information is available at www.icare.nsw.gov.au

What does the HBCF do?

The HBCF provides a safety net for homeowners who have contracted residential building work and their builder has been unable to honour commitments under the building contract due to insolvency, death or disappearance. The safety net is also provided where the builder’s licence has been suspended for failing to comply with a Tribunal or Court order to pay compensation to the homeowner. HBCF insurance is required to be obtained by all licensed contractors for most residential construction projects over $20,000, with some types of construction exempted, E.g. new high-rise buildings.

For homeowner general enquiries click here.  For homeowner claims click here.

Aside from providing compensation, the HBCF assesses building contractors' eligibility to obtain cover. Eligibility is the term used to describe the entitlement that a builder has to apply for a Certificate of Insurance for home building project, and the conditions under which the Certificate of Insurance may be granted. A Certificate of Eligibility means that a builder has been granted the entitlement to apply for job-specific / project-specific Certificate of Insurance within the approved number and value of projects under construction. Builder enquiries and applications for insurance are to be made through an approved distributor (insurance broker).

To view Approved Distributors list click here.  For builder eligibility enquiries click here.

State Insurance Regulatory Authority (SIRA)

The NSW State Insurance Regulatory Authority (www.sira.nsw.gov.au) is responsible for regulating workers compensation insurance, motor accidents compulsory third party (CTP) insurance and home building compensation insurance, in NSW.

SIRA was established through the State Insurance and Care Governance Act 2015 as part of reforms to the NSW workers compensation system and are part of the NSW Department of Finance, Services and Innovation.

SIRA’s mission is to focus on service delivery to injured people, affordability, and the effective management and sustainability of these insurance schemes.

SIRA has a FAQ on answers to questions builders and tradespeople have been asking about the home building compensation reforms

Home building compensation disputes

If you’re a builder not satisfied with the decision regarding your eligibility outcome, or a home owner not satisfied with the decision regarding your claim outcome, you have a right to request a review.

For builders

Under the market practice guidelines icare hbcf and its scheme agents are required to have internal complaints and dispute handling procedures in place.

If you are not satisfied with a decision about your eligibility, you can ask Action Insurance Brokers to arrange a review by the scheme agent (i.e. QBE or Residential Builders Underwriting Agency) through their internal underwriting committee.

If you are still not satisfied with the decision of the scheme agent’s underwriting committee, you can ask Action Insurance Brokers to escalate a dispute to the icare hbcf’s underwriting committee.

The underwriting committee will consider your submissions and make a recommendation to icare hbcf’s General Manager. Action Insurance Brokers will inform you of the decision.

The decision of icare hbcf is final, however, you have an option to lodge a complaint with SIRA if your matter was not handled in accordance with the market practice guidelines

For home owners

Insurers are required to have an effective internal complaint handling process in place.

If you are not satisfied with a decision on a claim by your insurance agent (QBE or RBUA), you are entitled to request a review of the decision by the insurance agent.

If the matter is not resolved, you can then request that it be escalated to the insurance agent’s claims committee and potentially to the icare claims committee.

You also have a right of appeal to the NSW Civil & Administrative Tribunal (NCAT) (or the District Court where the amount involved exceeds the tribunal’s $500,000 jurisdictional limit).

We can only investigate a complaint against an insurer approved under the Home Building Act 1989 to provide insurance under the Home Building Compensation Fund in NSW, if they fail to comply with legal requirements or conditions of approval to operate in the market of insurance under the fund (including the market practice guidelines, claims handling guidelines (or any other condition imposed by the Minister).

Where can I find out more information?

The Home Building Act 1989 regulates the cover required and service standards of icare hbcf. For further information about the Insurance and Care NSW visit the website www.icare.nsw.gov.au.   

Detailed information on the operation of the scheme is available at www.fairtrading.nsw.gov.au. Fair Trading also provides a link between the building dispute resolution and HBCF insurance. For further details click Lodging a complaint also available in the footer of this page.

Contact information for HBCF can be found at the link here.