Builders Warranty

What is Builders Warranty Insurance?

Builders Warranty Insurance exits in most States and Territories around Australia, to protect consumers in the event their builder starts but is unable to complete construction of their home.

New South Wales

The Home Building Act 1989 establishes a Home building Compensation Fund (HBCF) scheme, formerly known as the Home Warranty Insurance Scheme. The scheme sits at the end of a comprehensive consumer protection regime for homeowners and provides a Safety Net for consumers where builders / contractors fail to complete residential building work or rectify defects.

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, for more information for exempt projects please email: This email address is being protected from spambots. You need JavaScript enabled to view it. with your project details and they will provide you an answer.

From 1^st September 2015, State Insurance Regulatory Authority (SIRA), which is part of Department of Finance, Services and Innovation, assumed the regulatory functions of Home Building Compensation previously undertaken by NSW Fair Trading. The NSW Self Insurance Corporation (SICorp) became part of icare (Insurance and Care NSW) and changed its branding to icare HBCF.

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.

Understand the process of applying for a certificate of eligibility

A Certificate of Eligibility means that you have been assessed by icare, the Eligibility Risk Manager, and have been granted the entitlement to apply for an icare HBCF Certificate of Insurance for individual projects.

Your HBCF Eligibility also refers to the eligibility conditions under which the Certificate of Insurance may be granted to you.

These conditions include open job limits (number and value), types of construction & maximum contract value.

It is important to start the Eligibility Application process well before you intend to commence any residential building, as the processing timeframes can vary pending your situation. For most Eligibility Applications this timeframe is 24-48 hours from submission.

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.

Home building compensation disputes

If you are a builder not satisfied with the decision regarding your Eligibility outcome, or a homeowner not satisfied with the decision regarding your claim outcome, you have a right to request an Appeal / Review.

For Builders - Please contact us if you are not happy with your eligibility outcome and wish to Appeal and we will arrange for our Authorised Distributor partner to assist you.

For Homeowners - In order to assist you in lodging a complaint, please contact icare direct by clicking here and follow their processes so we can help you obtain an outcome.

How can we help you ?  

Action Insurance Brokers have been handling Builders Warranty Insurance since 1997 and have significant experience and expertise in this area. Under current regulations, builders applying for Builders Warranty Insurance from Action Insurance Brokers Pty Ltd, are serviced by our nominated specialist Builders Warranty partner. Our Partner has extensive experience and expertise in providing Builders Warranty insurance in NSW and delivers our Builders’ needs with efficiency, care and exceptional service.       

Other States and Territories

For Builders Warranty Insurance in the ACT and other States and Territories, please contact Action Insurance Brokers on 02 89351500.

For All other types of insurance for Builders

For all other insurances that builders require, your Action Insurance Brokers our Team is pleased to assist. The Team at Action Insurance Brokers have a combined history of over 300 years’ experience in General Insurance and Insurance Broking, specialising in small to medium sized businesses insurance and private insurances with a major focus on the construction industry and its participants.