Make a home building compensation claim

Eligibility for a claim

To make a claim under the Home Building Compensation Scheme, ensure that:

• you have HBC insurance. You can check your insurance cover using the HBC Check tool
• you make a claim within the warranty period except in certain circumstances. The warranty periods are:
  • for incomplete work, 12 months after failing to start or stopping the work
  • for completed work, 6 years for major defects and 2 years for other losses. You also get up to an extra 6 months if you become aware of the loss in the final 6 months of the warranty period.

You can also make a ‘delayed claim’ after the warranty period (up to 10 years after completion of work) if you have been actively trying to pursue the builder to get an outcome (via the Building Commission NSW's dispute resolution process or the NSW Civil and Administrative Tribunal or Court).

Notify your loss

You should contact the HBC insurer, called ‘icare HBCF’, to notify them as soon as you have a problem with a business not starting or finishing work on your home, or if you think there is defective work. You should do this even if the business is still trading. You must notify icare in writing.

The notification to the insurer must be made within the warranty period for you to be able to make a claim after the warranty period.

Along with notifying icare, you should attempt to resolve any problems either directly with the business or through the Building Commission NSW's dispute process. The Building Commission NSW can also provide assistance.

Lodge a claim

You can lodge a claim if your builder or tradesperson has:

• died
• become insolvent
• disappeared
• had their licence suspended due to non-compliance with a money order of the Tribunal or a Court in your favour.

The claim can be lodged with icare (currently the sole HBC insurer).

If you are not able to locate the business, you can contact the Building Commission NSW about it. They will conduct their own searches and, if unsuccessful, provide a letter confirming the business has disappeared. This letter will be sufficient for you to support making a claim.

Once you have lodged a claim, icare HBCF will tell you if they need further information or can determine your claim. They must give you the decision in writing. If you are not satisfied with the decision, you have a right of appeal.

The Home Building Compensation Disputes page has more information on the appeals process.