HBCF (Home Building Compensation Fund)

The Home Building Compensation Fund (HBCF) is NSW’s mandatory statutory home warranty insurance scheme, administered by icare (NSW Self Insurance Corporation). It covers homeowners for residential building work where the contract value exceeds $20,000 (including GST) if the licensed builder or tradesperson becomes insolvent, dies, disappears, or has their licence suspended before completing the work or rectifying defects (verified 2026-05-07, Home Building Act 1989 (NSW) Part 6).

Coverage runs six years for major structural defects and two years for other defects from the date of practical completion. Only licensed builders can obtain an HBCF certificate; the certificate must be provided to the owner before work commences or any payment is accepted. HBCF is separate from construction works (CAR) insurance, which covers accidental physical damage during construction.

Also known as: Home warranty insurance (NSW), builders warranty insurance (legacy term).

Category: Insurance and licensing.

Related

• Construction works insurance
• Defects liability period
• Practical completion

See also

• Reading a building contract: what to look for first

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Last updated: 2026-05-07. Verified: 2026-05-07. Quarterly review for currency.