IR & LEGAL UPDATE ARE YOU REALLY COVERED? An overview of your insurance requirements. Compulsory insurance: • all other defects (non-structural element) provides a brief comparison of the various what you need to have for two years after the work was state requirements: completed. ACT Home Warranty Insurance (HWI) A building (usually) does not include paving HWI protects consumers against failure or a structure that is a fence, retaining wall, • Any building work over the amount of the builder or contractor. HWI is outdoor swimming pool, outdoor ornamental of $12,000 requires Home Warranty taken out for the benefit of the owner pond, mast, antenna, aerial, advertising, Insurance. (and all later owners of the property) device notice or sign. HWI does not protect • The insurance covers up to the amount and covers all defects in the residential the builder. of $85,000. building work and non-completion of that If you are a licenced building contractor • For more information visit work in the circumstances where the dealing directly with home owners and you www.actpla.act.gov.au builder dies, goes broke or disappears undertake contracted residential building NSW (or, in NSW, the suspension of a works that is required to be warranted in • Any building work over the amount builder’s licence). your state, then you must purchase home of $20,000 requires Home Warranty warranty insurance prior to accepting any Insurance. The HWI policy covers: deposits or payment. • The insurance covers up to the amount •all major defects (structural element) Legislation outlining the extent of Home of $340,000. for six years after the work was Warranty Insurance cover to the home • For more information visit completed. owner varies across states, the following www.icare.nsw.gov.au P18 BUILDING NEWS ISSUE 1/2019