Your Cart

×
Loading...

What is Home Building Compensation cover?

If you’re a licensed builder or tradesperson in NSW, you need to get home building compensation (HBC) cover for each home building project over $20,000 including GST.

HBC cover, which used to be called ‘home warranty insurance’, protects homeowners as a last resort if you can’t complete building work or fix defects.

You need this cover to work directly for a developer, homeowner or owner-builder for new homes, new low-rise ‘multi-unit’ buildings of three storeys or less, or home renovations, unless exempt. Sub-contractors do not need the cover, because the head contractor has covered the work.

You must give proof of the HBC cover to your customer before starting work or asking for any payment or deposit.

Failing to take out HBC cover for such work is an offence under NSW law.

You will need to apply for eligibility before you can buy HBC cover. You should not quote or contract for work that needs HBC cover unless you are eligible.

Once you have eligibility, you will need to buy HBC cover for each relevant home building project.

How to get HBC cover

Home building compensation cover is only available from a single provider operated by the NSW Government – icare HBCF. icare distributes its insurance product only through brokers it has approved and which are published on its website here. There are no other licensed insurers or providers authorised to offer home building compensation cover in NSW.

Building contracts and HBC cover

You must state the cost of HBC cover in your building contract.

Your contract must disclose the total amount of money that you had to pay for the cover (which may include brokerage, fees and taxes).

If you want to charge a margin to arrange the cover, you should not include that in the ‘cost of cover’ item. You can include it elsewhere in the contract.

If the contract will be signed before you buy the cover, it must include a reasonable estimate of what the cover will cost.

You should also ensure that your contract permits you to adjust the contract price to recover any difference between the actual cost of cover and your estimate. TLA has copies of contracts that memebers can utilise in the Members Only Resource section of the Member Portal.

Should you have any questions about HBC please contact us on (02) 9630 4844 or email team@landscapeassociation.com.au 

Comments

Comments posted to this page are moderated for suitability. Once your comment has been checked it will be uploaded to the site.

Terms and Condition

These Terms and Conditions must be read in conjunction with TLA’s Privacy and Copyright Policy Statements.

Descriptions of contracts contained on this website are a guide only and do not outline a specific fitness for purpose. The Landscape Association gives no representation or warranty about suitability of a particular contract for a specific function.

The Landscape Association does not accept responsibility for loss or damage suffered by any person or body relying directly or indirectly on any information contained within the pro forma contracts or the LNA Master Landscapers Rates Guide Schedule of Rates for Landscape Works. All contracts and Guides are purchased at the risk of those making the purchase.

TLA does not have access to the customer’s credit card number which is encrypted for security purposes. The credit card will be debited at the time of processing the payment. A tax invoice/receipt will be automatically generated and emailed to the customer.

Orders are ordinarily dispatched by Australia Post, Express Post, within seven working days. Five days should be allowed for delivery. This timeframe is indicative only. Every reasonable effort will be made to notify the customer if a delay is expected.

Provided an order has not been dispatched, it may be cancelled in full or part by calling The Landscape Association on (02) 9630 4844. Returns are not accepted by The Landscape Association unless the customer has received an unordered or faulty item, or unless otherwise required under Australian legislation.

The Landscape Association reserves the right to change these terms and conditions at any time.

a a a