Domestic Building Insurance (also known as Warranty Insurance) is a mandatory type
of consumer protection cover in Victoria, Western Australia and New South Wales.
The requirements vary slightly between the states but in all cases the insurance
is for the benefit of the purchaser (not the owner builder). The insurance is required
where an owner builder sells the property on which they have constructed building
works (over $12,000 in value) within the prescribed period set by legislation (6
years from completion)*.
When you are selling a property on which you constructed, managed or arranged "domestic
building works" as an owner builder (ie the total project was not the subject of
a Contract with a Registered or Licenced Builder, who provided a separate Warranty
Policy), and those works were completed* within the last 6 years, then you may be
required to provide certain statutory warranties, reports and domestic building
(warranty) insurance for the benefit of the purchasers, prior to entering into a
Contract of Sale.
We realise that this insurance is often not fully understood by the owner builder
and can hold up a pending sale, so the staff at Building Industry Solutions pride
themselves on offering fast, courteous and hassle free service to assist you in
understanding and providing the necessary documents pertinent to the sale of your
owner built property.
How do I find out more?
Please take the time to look at our Consumer Advice Sheets on this type of insurance
or call or email Denise Shackleton (denise@buildinginsurance.com.au)
for advice.