This is insurance that you take out for your client on works over $16,000. It was previously known as 'builders warranty insurance'.
You must provide your client with a copy of the policy and a certificate of currency covering their property before you take a deposit or any other money.
Find more information about taking payments for home building.
The insurance covers your client if, before work is complete, you:
- die
- are declared insolvent
- disappear.
It covers costs up to $300,000 to fix structural defects for six years, and non-structural defects for two years.
In all other cases, it is up to you to fix or complete works, or to pay any costs awarded.
The is a significant provider of Domestic Building Insurance in ÌÒÉ«ÊÓƵ, however there are now a small number of other commercial providers. Builders are encouraged to do their research to find a provider that best meets the needs of their business.