When do I need Home Building Compensation Cover (formerly Home Warranty Insurance)?

Home Building Compensation Cover is required for any residential building work where the work requires a licence and the value of the work is over $20,000. This insurance must be provided by the builder or tradesperson before taking any money (including a deposit) from a home owner under a residential contract and prior to commencing any work under that contract.

The Home Building Compensation Cover Certificate must be provided to the Principal Certifier (PC) prior to building work commencing. The PC cannot carry out any inspections until the certificate has been provided. Further information can be found on the NSW Fair Trading website.