Australian Capital Territory
Residential Builders' Warranty in the Australian Capital Territory
This type of insurance is compulsory for all residential building works carried out by a Licensed Builder in excess of $12,000. The insurance is taken out by the builder in favour of the homeowner (beneficiary) and also covers any subsequent owners of the property during the statutory warranty period.
A brief overview of the Australian Capital Territory Residential Builders' Warranty Policy is provided below. For more information view the Australian Capital Territory Policy Wording >>
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Policy Coverage
The Residential Builders' Warranty Policy covers loss or damage resulting from non-completion of the work, loss of deposit or breach of statutory warranty if you can not recover compensation from the builder because of the following situations:
- death of the builder
- disappearance of the builder
- insolvency of the builder
How much will we pay?
QBE, at its discretion, can either make good the loss or damage or pay the amount of the loss or damage. The Australian Capital Territory statutory limitation is set at $85,000 in total in the aggregate for all claims under this policy for each home. Limitations for non-completion are set at $10,000 providing the cost of the work done does not exceed the amount paid by the building owner.
What is the excess?
The excess is $500 (five hundred dollars) for each claim made under this policy.
How long are you covered?
The policy covers loss, damage or expense:
- for 5 years from the date of occupancy for builders.
- from the date the land is transferred to someone else and ending 5 years from the date of occupancy for speculative builders.
How long do you have to claim?
You must notify QBE of the death, disappearance or insolvency of the builder within 90 days of you becoming aware of that event.
How do I apply for a QBE Residential Builders' Warranty insurance policy?
Once the Eligibility Application form is completed, please submit your application form and supporting information to one of our authorised brokers.
Australian Capital Territory Government Website
For more information please refer to www.actpla.act.gov.au