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Making a claim

This page has information on the process to follow to make a claim.

As a homeowner, if you suffer a financial loss because a builder or tradesperson fails to start or complete the building work, or fails to fix defective work, you are able to make a claim under a contract for home building compensation insurance if they’ve:

  • become insolvent ,
  • died or disappeared, or
  • had their licence suspended because they did not pay you compensation that had been ordered by a tribunal or court (only if your policy was issued on or after 19 May 2009).

All insurance policies issued from 1 February 2012 provide a cover of $340,000. An excess fee of $250 applies.

SIRA and Fair Trading regulate the home building compensation system. icare are the ones who manage policies (through insurance agents). Follow the process below to make a claim:.

1. Know what you can claim for

In general terms, homeowners can claim for:

  • loss resulting from incomplete work because of early termination of the contract (conditions apply)
  • loss resulting from a breach of statutory warranty (eg work is not done with due care and skill, or as per the plans, or the materials used are not suitable, or the work does not comply with the law)
  • loss resulting from faulty design provided by the builder
  • the reasonable costs of alternative accommodation, removal and storage
  • the loss of deposits or progress payments (conditions apply)
  • the legal or other reasonable costs incurred in seeking to get compensation
  • the loss resulting from the work done by the subcontractors of the builder
  • the loss resulting from the work done by the builder to rectify the problem after completion of the work

Read current scheme and cover before you make a claim. It has more information on when and what you can claim for.