QBCC Home Warranty Insurance Queensland: builder's guide to the QHWS
QBCC Home Warranty Insurance: mandatory for residential work over $3,300 in QLD. 6 yr 6 month structural, 6-month non-structural, $200k cover. Builder's guide.
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QBCC Home Warranty Insurance (the Queensland Home Warranty Scheme) is mandatory for any licensed contractor doing residential building work in QLD valued over $3,300 (including GST). The premium is collected from the homeowner and paid to QBCC before work starts; QBCC issues a Notice of Cover. Coverage runs for 6 years and 6 months from the earliest of contract date, premium payment, or work commencement: 6 years 6 months for structural defects, 6 months from completion for non-structural defects. Standard limit is $200,000 per claim (optional $300,000 top-up available). Non-completion claims require the contract to end within 2 years of commencement and be lodged within 3 months of contract termination. Taking money before the Notice of Cover is issued exposes the builder to regulatory action and may invalidate the policy.
In plain English
The Queensland Home Warranty Scheme (QHWS) is Queensland’s statutory last-resort insurance scheme for residential building work. It is administered by the QBCC and funded through premiums that licensed contractors collect from homeowners and pay directly to QBCC. The scheme protects homeowners and successive owners of the property if the contractor cannot complete the work or rectify defects (verified 2026-05-10, QBCC, What is home warranty insurance).
This is a not-for-profit statutory scheme. Unlike commercial insurance, there is no private underwriter: the QBCC both collects premiums and manages claims.
What it requires
Who must obtain cover
Any licensed contractor carrying out residential construction work in Queensland valued at more than $3,300 (including materials, labour, and GST) must obtain a home warranty policy. The obligation sits with the contractor, not the homeowner. The contractor:
- calculates the insurable value of the work
- includes the premium in the contract price
- collects the premium from the homeowner as part of the deposit
- pays the premium directly to QBCC
- provides the homeowner with the Notice of Cover before work begins (verified 2026-05-10, QBCC, What work requires insurance)
Owner-builders and unlicensed contractors cannot obtain QHWS cover. Work by unlicensed contractors is excluded.
When the policy must be in place
The premium must be paid and the Notice of Cover issued before any work commences and before the contractor requests or receives any progress payment. For projects requiring building approval, the Notice of Cover must be provided to the certifier before the approval can be issued (verified 2026-05-10, QBCC, Take out home warranty cover).
Coverage periods
Coverage runs from the earliest of: contract date, date of premium payment, or date work commences.
| Claim type | Coverage period |
|---|---|
| Structural defects | 6 years and 6 months from policy start |
| Non-structural defects | 6 months from completion of the work |
| Non-completion | Contract must end within 2 years of commencement; claim must be lodged within 3 months of contract end |
If construction exceeds six months, the coverage period for structural defects extends accordingly: the standard 6 years 6 months is calculated from policy start, so a long build does not reduce the post-completion structural window below six years (verified 2026-05-10, QBCC, What is home warranty insurance).
Coverage is attached to the property, not the original owner. Subsequent purchasers inherit the unexpired cover.
Coverage limits
| Cover level | Maximum claim |
|---|---|
| Standard cover | $200,000 per claim |
| Optional additional cover | $300,000 per claim |
| Alternative accommodation, removal, storage (standard) | $5,000 |
| Alternative accommodation, removal, storage (optional) | $10,000 |
The optional top-up to $300,000 must be elected by the homeowner within 30 business days of the contract. Once that window closes, the standard $200,000 limit applies.
Trigger events for non-completion claims
Non-completion claims can be made if the contractor cannot or fails to complete contracted work because (verified 2026-05-10, Lamont Project and Construction Lawyers, Home Warranty Insurance, Non-Completion Claims):
| Trigger event | Notes |
|---|---|
| Builder becomes bankrupt or company goes into liquidation | Standard insolvency trigger |
| Builder’s licence is suspended or cancelled | Even if the licence lapsed after contract was signed |
| Builder dies | Before completion or rectification |
| Builder is injured and cannot complete | Incapacity trigger |
| Owner validly terminates the contract | Contract termination must be valid under contract law |
Non-completion claims are only available under fixed-price contracts. Cost-plus contracts are excluded from non-completion cover because the final contract value is indeterminate (verified 2026-05-10, QBCC, Claim home warranty insurance).
For defective work claims, the triggers are different: the contractor must have been given a QBCC direction to rectify the defects and failed to do so.
What it covers
Work types covered by the scheme include:
- New homes, duplexes, townhouses, and multi-unit dwellings up to 3 storeys above car park
- Renovations, extensions, and repairs over $3,300 (kitchens, bathrooms, roofs, decks, structural work, tiling, plastering)
- Residential outbuildings: garages, carports, pool change rooms
- Swimming pools (construction and installation, not renovation)
- Associated infrastructure (for non-completion claims only): driveways, paths, fences, air conditioning, hot water systems, security doors, landscaping
What it doesn’t cover
| Exclusion | Detail |
|---|---|
| Work valued at $3,300 or less | Below the threshold, no policy is required |
| Buildings more than 3 storeys above car park | Multi-storey apartment buildings are outside the scheme |
| Commercial and industrial buildings | Scheme covers residential work only |
| Owner-builder projects | Owner-builders cannot obtain QHWS cover |
| Work by unlicensed contractors | Invalid policy: coverage requires a licensed contractor |
| Cost-plus contracts (non-completion) | Non-completion claims not available on cost-plus |
| Standalone excluded work | Driveways, paths, fences, air conditioning, hot water systems, security doors, and landscaping when contracted as standalone jobs (not part of a larger residential project) |
| Boarding houses, hotels, caravan parks, schools, hospitals, retirement villages | Non-residential use classes |
| Caravans, tents, temporary structures | Not residential buildings |
Premium calculation
The premium is based on the insurable value of the work. Insurable value includes:
- All materials (even where supplied by the homeowner or owner-supplied)
- Labour
- Any associated work in the contract: landscaping, driveways, fences, pool fences, retaining walls, air conditioning, hot water systems, security doors
- GST
The QBCC premium itself is excluded from the insurable value calculation.
For multiple dwellings (duplexes, apartments), the premium is calculated on a notional per-unit basis: divide total insurable value by number of dwellings, apply the premium table per unit, then multiply by the unit count. Notional pricing does not apply to specific limited-scope standalone items (roof repairs under $5,000, common area work under $20,000, swimming pools, individual unit renovations).
For projects valued at $150,000 or more (excluding GST), the QLeave levy also applies at 0.575% of work value (excluding GST). Both the home warranty premium and the QLeave levy must be included when calculating the other (verified 2026-05-10, QBCC, Calculating the premium).
Use the QBCC premium tables or the QBCC online calculator to get a current figure before tendering.
Claims process
- Lodge a complaint with QBCC first: for a non-completion claim, lodge a non-completion complaint; for a defective work claim, lodge a defective work complaint. QBCC investigates and, where appropriate, directs the contractor to complete or rectify.
- If the direction is not complied with: QBCC registers the home warranty insurance claim and assigns a Resolution Services officer.
- Gather documentation: contract and variations, specifications, building plans and approvals, evidence of payments made, Notice of Cover, and evidence the contract ended (for non-completion) or that defects were not rectified (for defective work).
- Act in good faith: disclose all relevant information. Withholding information that would have led to a claim denial gives QBCC the right to recover any amount paid.
- QBCC determination: if the claim is accepted, QBCC arranges or funds completion or rectification, up to the coverage limit. If rejected, QBCC issues a referral letter enabling application to QCAT (Queensland Civil and Administrative Tribunal) (verified 2026-05-10, QBCC, Claim home warranty insurance).
Claim time limits
| Claim type | Lodgement deadline |
|---|---|
| Structural defect discovered | Within 3 months of discovery, within the 6 yr 6 month period |
| Non-structural defect | Notice within 6 months of completion; claim within 7 months of completion |
| Non-completion (work started) | Contract ends within 2 years of commencement; claim within 3 months of contract end |
| Non-completion (work not started) | Contract ends within 2 years of signing; claim within 3 months of contract end |
Practical implications
Builders: include the premium in your estimate before quoting. Sequence: calculate insurable value, obtain premium quote via QBCC, include premium in contract price, collect premium as part of deposit, pay to QBCC before work starts, provide Notice of Cover to homeowner (and certifier if building approval is required). Keep your QBCC licence current throughout the project: a lapsed or suspended licence during works can trigger a non-completion claim against the policy.
Homeowners: before signing and paying a deposit, ask the builder to confirm the QBCC policy will be in place. Verify the Notice of Cover once issued. Consider electing the optional $300,000 top-up within 30 business days of contract for high-value projects. The QHWS is last-resort: first, QBCC investigates the complaint and directs the contractor. The insurance claim only activates if the direction is not complied with or the trigger event has occurred.
Source link
Queensland Building and Construction Commission Act 1991 (Qld) on Queensland Legislation.
QBCC, Queensland Home Warranty Scheme (verified 2026-05-10).
QBCC, Home warranty insurance obligations (verified 2026-05-10).
References
- QBCC, What is home warranty insurance (verified 2026-05-10)
- QBCC, What work requires insurance (verified 2026-05-10)
- QBCC, Take out home warranty cover (verified 2026-05-10)
- QBCC, Calculating the premium (verified 2026-05-10)
- QBCC, Claim home warranty insurance (verified 2026-05-10)
- QBCC, Understanding the Queensland Home Warranty Scheme (verified 2026-05-10)
- Lamont Project and Construction Lawyers, Home Warranty Insurance, Non-Completion Claims (verified 2026-05-10)
- Queensland Building and Construction Commission Act 1991 (Qld) (verified 2026-05-10)
- Merlo Law, QLD Home Warranty Insurance complete legal guide (verified 2026-05-10)
Related
- QHWS (Queensland Home Warranty Scheme) glossary entry
- QBCC (Queensland Building and Construction Commission)
- Builder’s licence renewal in QLD
- Construction works insurance
- Security of Payment QLD (BIF Act)
- Reading a building contract: what to look for first
- Statutory warranty
- Practical completion
See also
- Defects liability period
- Defects list (PCI)
- HIA fixed-price contract
- HIA contracts overview
- Head contractor
- HBCF (Home Building Compensation Fund, NSW)
- DBI (Domestic Building Insurance, VIC)
Last updated: 2026-05-10. Verified: 2026-05-10. Quarterly review for currency.