Home Warranty Insurance

Homeowners who are left with incomplete or defective construction jobs may be protected by mandatory home warranty insurance in many parts of Australia – but only if the builder has gone missing, passed away, become insolvent or lost their licence.

This type of insurance is purchased by the builder doing the work and has many different names depending on the state you live in.

Summary of the facts

Pros and cons of home warranty insurance

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Name	Product	Finder Rating
Budget Direct Home & Contents Insurance Budget Direct Home & Contents Insurance 4.5/5★★★★★ rating Finder AwardBonus	Storm Fire Theft Flood Accidental Damage (e.g TV falls) Impact to home (e.g falling trees) Escaped water (e.g burst pipe) Portable contents (e.g dropped laptop outside of home) + more insured events and other features Storm Fire Theft Flood Accidental Damage (e.g TV falls) Impact to home (e.g falling trees) Escaped water (e.g burst pipe) Portable contents (e.g dropped laptop outside of home) + more insured events and other features	4.5/5★★★★★ rating	Our verdict: The most popular insurer on Finder, Budget Direct prioritises low-cost cover and gives you up to 30% off your first year for new combined policies purchased online. This is a big reason it won this year’s Finder Award for value.	Get a quote View details	Compare	loading Fetching your data...
Youi Building and Contents Insurance Youi Building and Contents Insurance 4.5/5★★★★★ rating Best Rated Brand	Storm Fire Theft Flood Accidental Damage (e.g TV falls) Impact to home (e.g falling trees) Escaped water (e.g burst pipe) Portable contents (e.g dropped laptop outside of home) + more insured events and other features Storm Fire Theft Flood Accidental Damage (e.g TV falls) Impact to home (e.g falling trees) Escaped water (e.g burst pipe) Portable contents (e.g dropped laptop outside of home) + more insured events and other features	4.5/5★★★★★ rating	Our verdict: Finder’s 2022 Insurer of the Year for Customer Satisfaction and our Top Pick for Fire Damage cover. It’s good if you want a tailored quote over the phone.	Get a quote View details	Compare	loading Fetching your data...
QBE Home & Contents Insurance QBE Home & Contents Insurance 3.5/5★★★★★ rating Green CompanyBonus	Storm Fire Theft Flood Accidental Damage (e.g TV falls) Impact to home (e.g falling trees) Escaped water (e.g burst pipe) Portable contents (e.g dropped laptop outside of home) + more insured events and other features Storm Fire Theft Flood Accidental Damage (e.g TV falls) Impact to home (e.g falling trees) Escaped water (e.g burst pipe) Portable contents (e.g dropped laptop outside of home) + more insured events and other features	3.5/5★★★★★ rating	Our verdict: Finder's Top Pick for Floods plus cover for other common claims such as fire and theft). Its discount is better than most – 20% off your first year with a combined policy.	Get a quote View details	Compare	loading Fetching your data...
Bendigo Bank Gold Home & Contents Insurance Bendigo Bank Gold Home & Contents Insurance 2.5/5★★★★★ rating	Storm Fire Theft Flood Accidental Damage (e.g TV falls) Impact to home (e.g falling trees) Escaped water (e.g burst pipe) Portable contents (e.g dropped laptop outside of home) + more insured events and other features Storm Fire Theft Flood Accidental Damage (e.g TV falls) Impact to home (e.g falling trees) Escaped water (e.g burst pipe) Portable contents (e.g dropped laptop outside of home) + more insured events and other features	2.5/5★★★★★ rating	Our verdict: A good option if you want a well regarded brand. All come with automatic flood cover and let you pay monthly or fortnightly at no extra cost.	Get a quote View details	Compare	loading Fetching your data...
Honey Home & Contents Insurance Honey Home & Contents Insurance 4.5/5★★★★★ rating Finder AwardBonus	Storm Fire Theft Flood Accidental Damage (e.g TV falls) Impact to home (e.g falling trees) Escaped water (e.g burst pipe) Portable contents (e.g dropped laptop outside of home) + more insured events and other features Storm Fire Theft Flood Accidental Damage (e.g TV falls) Impact to home (e.g falling trees) Escaped water (e.g burst pipe) Portable contents (e.g dropped laptop outside of home) + more insured events and other features	4.5/5★★★★★ rating	Our verdict: Honey gives you $250 smart sensors to reduce accidents and estimates your rebuild costs for you. Honey was a finalist for the comprehensive category in this year’s Finder Awards.	Get a quote View details	Compare	loading Fetching your data...
Seniors Top Home & Contents Insurance Seniors Top Home & Contents Insurance 3/5★★★★★ rating Bonus	Storm Fire Theft Flood Accidental Damage (e.g TV falls) Impact to home (e.g falling trees) Escaped water (e.g burst pipe) Portable contents (e.g dropped laptop outside of home) + more insured events and other features Storm Fire Theft Flood Accidental Damage (e.g TV falls) Impact to home (e.g falling trees) Escaped water (e.g burst pipe) Portable contents (e.g dropped laptop outside of home) + more insured events and other features	3/5★★★★★ rating	Our verdict: Get up to 20% off when you buy a combined home and contents policy. Terms, conditions, underwriting criteria and minimum premiums apply, which may reduce discount. Make sure your rebuild costs are accurate though – Australian Seniors don’t do underinsurance cover.	Get a quote View details	Compare	loading Fetching your data...
Kogan Home & Contents Insurance Kogan Home & Contents Insurance 3/5★★★★★ rating Bonus	Storm Fire Theft Flood Accidental Damage (e.g TV falls) Impact to home (e.g falling trees) Escaped water (e.g burst pipe) Portable contents (e.g dropped laptop outside of home) + more insured events and other features Storm Fire Theft Flood Accidental Damage (e.g TV falls) Impact to home (e.g falling trees) Escaped water (e.g burst pipe) Portable contents (e.g dropped laptop outside of home) + more insured events and other features	3/5★★★★★ rating	Our verdict: Good comprehensive cover (issued by QBE). Also, get 22% off on your first year's premium when you purchase a new combined Home & Contents insurance policy online + $10 monthly credit. T&Cs apply.	Get a quote View details	Compare	loading Fetching your data...

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Frequently asked questions about home warranty insurance

• How to get home warranty insurance for builders

  The process for purchasing home warranty insurance differs from state to state, although there are some similarities. In all states, you'll only be purchasing it if you're a builder or tradesperson doing residential building work.

  Generally, you'll need to do the following:

  • Ensure you have the correct documents and applications to prove your eligibility to an insurer.
  • Purchase your policy through your state's provider or an insurance broker. Links to brokers, policy providers and home warranty insurance info for each state are listed at the bottom of this section. The price will depend largely on the value of your building contract.
  • Keep your policy documents handy.

  State	What you need to do
  New South Wales	All home building compensation insurance is purchasable from icare HBCF through an approved broker. You can find more info at the State Insurance Regulatory Authority.
  Western Australia	To access the process for getting your building work approved and insured, go through the government's Building and Energy website.
  South Australia	Building indemnity insurance has to be secured from one of the few approved insurers through your insurance broker. To see the process and list of insurers, see the South Australian Government Financing Authority's website on the matter.
  Victoria	Domestic building insurance is handled through the VMIA, which has a short approved list of authorised distributors.
  Queensland	To find out about purchasing home warranty insurance, see the Queensland Building and Construction Commission's page.
  Australian Capital Territory	For information on obtaining home warranty insurance in the ACT, visit the Environment, Planning and Sustainable Directorate site.

• Who pays home warranty insurance?

  The person who actually takes out the policy and pays the premium for home warranty insurance is the builder or tradesperson doing the work. However, the beneficiary of the policy is the homeowner whose house is having work done on it.

• Does home warranty insurance cover vandalism?

  No, home warranty insurance policies will not generally include this feature in their cover. However, if you have a home insurance policy, you should be covered.

• At what point should a builder provide home warranty insurance?

  While the exact wording of legislation varies around the country, builders are generally required to take out home warranty insurance before any money changes hands. In South Australia, for example, the insurance must already be in place before the builder accepts any money and before they get a building permit or licence from the local government.

• What does it mean if a builder is only available for contracts not requiring home warranty insurance?

  This means the builder has not been given eligibility for an insurer and cannot take out home warranty insurance.

• Why should I check that the builder's name on the contract matches the name on the insurance certificate?

  You should check this closely because if you fail to do so, the insurance provider will most likely reject your claim.

• How do I successfully make a claim?

  • If you want to make a home warranty claim, get in touch with the insurance provider via phone or email. You'll then typically have to fill out a claim form and provide full details of the reason for your claim.
  • Next, send the completed form to your insurer along with any supporting evidence or information they may require. This could include copies of the building contract, your certificate of insurance, the plans and specifications for the construction work, proof of payment, consultant reports you may have obtained in relation to the faulty work and much more.