The NSW Government’s reforms will maintain the high levels of protection that are currently available to you.
What won't change
Cover remains compulsory
Builders must continue to buy home building compensation cover before starting work or requesting payment.
Home building compensation cover will remain compulsory for residential building work costing more than $20,000, such as new home constructions (including multi-unit buildings of three storeys or less) or home renovations.
As a minimum, it must cover homeowners if their builder cannot complete building work or fix defects because they have become insolvent, died, disappeared or had their licence suspended for failing to comply with a court or tribunal order to compensate a home owner.
What will change
Homeowners will be better informed
You will be able to view the cost of the home building compensation cover in the building contract.
Incentives to reduce risk
Premiums are being priced according to risk to encourage better practices among builders and help protect homeowners.
Opportunities for better cover
The reforms will create the opportunity for new products with greater coverage or that offer a wider range of options or features.
There will now be two types of cover
When will the reforms be implemented?
The NSW Parliament has passed laws needed to implement the reforms.
We are designing the details for how the new scheme will operate. We have been consulting industry and other stakeholders during the second half of 2017.
Insurers and providers will be able to apply to us for a licence to sell home building compensation products in 2018.