Home warranty insurance in QLD, NSW and Victoria

Each state requires builders to arrange insurance that protects homeowners. Queensland’s Home Warranty Scheme, run by the QBCC, is compulsory above $3,300 with $200,000 standard cover. NSW’s icare HBCF applies above $20,000 and is last resort cover capped at $340,000. Victoria replaced domestic building insurance with a Home Warranty scheme on 1 July 2026 for contracts over $20,000.

The schemes look similar on paper but trigger in different ways. Queensland’s can respond while the builder is still around. NSW’s generally waits for the builder to become insolvent, die or disappear. Victoria’s new scheme lets you claim when an issue is first identified. If your builder is already in liquidation, start with our guide on what happens to your deposit.

What is the Queensland Home Warranty Scheme and who needs it?

According to the QBCC:

• Cover is compulsory for residential construction work valued at more than $3,300, counting materials, labour and GST.
• The contractor takes out the cover and pays the QBCC before work begins, but the cost is collected from the homeowner in the contract.
• Cover applies to fixed price and cost plus residential contracts, and generally requires a licensed contractor.

What triggers a Queensland claim?

The QBCC lists situations where the contractor will not or cannot finish the work, or does not fix defects. Subsidence or settlement is also listed. The QBCC decides whether to direct the contractor to rectify or complete the work, and it seeks to recover any payout from the contractor (QBCC: Home warranty insurance).

For a non-completion claim where the contractor is insolvent, the QBCC must also have cancelled the contractor’s licence. Insolvency alone is not enough (QBCC: non-completion claims).

How much does Queensland cover, and for how long?

From the QBCC’s maximum home warranty entitlements:

Stage	Covers	Standard limit	Optional limit
Before completion	Non-completion, defects, accommodation, vandalism, theft	$200,000	$300,000
After completion	Defects and accommodation	$200,000	$300,000
Duplex, before completion (per unit)	As above	$100,000	$150,000

Cover lasts 6 years and 6 months from the earliest of premium payment, the contract date or the start of work. For structural defects you must become aware of the defect within the cover period and claim within 3 months of becoming aware. For non-structural defects you must become aware within 6 months of substantial completion and claim within 7 months (QBCC: time limits).

How do I make a Queensland claim?

Speak to your contractor first. If the issue is not resolved, lodge a non-completion or defective work claim with the QBCC.

What is NSW’s HBCF and who needs it?

icare says HBCF cover is required by law for most residential building work valued at more than $20,000, unless an exemption applies. The builder must give you evidence of HBCF cover for your property before any work starts.

What triggers an HBCF claim, and how much is covered?

HBCF can respond if the builder:

• becomes insolvent, such as bankrupt or in liquidation;
• dies or disappears; or
• has their licence suspended for not complying with an NCAT or court money order.

It is last resort cover: if the builder is still trading, other options come first.

On cover limits, icare says the cap is $340,000 for policies issued from 1 February 2012, or $300,000 for earlier policies, per property. Major defects are covered for up to 6 years from completion and other defects for up to 2 years. A defect found in the last 6 months of a period may allow another 6 months to notify.

How do I make an HBCF claim?

From icare’s making a claim page:

1. Lodge online through the HBCF Portal (icare’s recommended route), or download the claim form and email it to hbcfclaims@icare.nsw.gov.au or post it.
2. Include what you can: the building contract, details of the problem, proof of the trigger event, and photos, reports or emails.
3. icare confirms receipt, reviews the claim, may request more information or an inspection, then issues a decision.

What changed in Victoria on 1 July 2026?

The Victorian Government says the Home Warranty scheme commenced on 1 July 2026. It applies to eligible contracts signed on or after that date, worth over $20,000, for buildings of 3 storeys or less, and it is administered by the new Building and Plumbing Commission.

The key difference from the old domestic building insurance model: claims no longer need the builder to be insolvent, missing or dead first. Covered issues include lost deposits, incomplete work and non-compliant or defective work. Domestic building insurance policies issued before 1 July 2026 stay with the original insurer.

The Premier announced on 13 May 2026 that the First Resort Home Warranty regulations were finalised, effective 1 July. The change follows the Building Legislation Amendment (Buyer Protections) Act 2025, which moved insurance functions to the Building and Plumbing Commission.

Victoria’s cover limits and claim steps under the new scheme are set out by the Building and Plumbing Commission. Check its current pages for the figures that apply to your contract.

How do I check cover before I pay?

• Queensland: confirm the Home Warranty premium is in your contract and that your contractor is licensed.
• NSW: ask for the HBCF certificate for your property before work starts.
• Victoria: for work over $16,000, Consumer Affairs Victoria says not to pay a deposit until you have evidence of the builder’s insurance and a current certificate for the project address (checklist).

To see which building companies appear in recent ASIC insolvency notices, use our ASIC notices tracker, and see how to check if a builder is in liquidation.

Primary sources

• QBCC: Understanding the Queensland Home Warranty Scheme
• QBCC: Home warranty insurance
• QBCC: Maximum home warranty entitlements
• QBCC: Time limits for cover and claims
• QBCC: Home warranty for non-completion claims
• icare: What is icare HBCF
• icare: HBCF, what am I covered for
• icare: Making a claim
• Victorian Government: Home Warranty insurance
• Premier of Victoria: Boosting consumer protection
• Consumer Affairs Victoria: Paying for building work checklist

General information only, not legal or financial advice. Check the primary sources above or get professional advice for your situation.