Home Warranty
Residential Owner Builders’ Warranty Insurance For Owner Builders
Why do I need owner builder insurance?
All owner builders need to be aware that in order to sell a property (within 6 years after construction or alteration completion) that State Legislation requires all owner builders to provide Residential Owner Builder Insurance for the benefit of the purchaser.
Who does residential builders’ warranty insurance cover?
Residential Owner Builders’ Warranty Insurance protects the purchaser and subsequent homeowners for prescribed defective workmanship if the owner builder dies, disappears or becomes insolvent.
Policy Coverage
The Owner Builders’ Warranty Policy covers loss or damage resulting from a breach of statutory warranty implied under the Contract of Sale if you cannot recover compensation from the owner builder because of:
- Death of the Owner Builder
- Disappearance of the Owner Builder
- Insolvency of the Owner Builder
What is my liability as an owner builder?
The State Legislation and the Residential Owner Builder Insurance Policy wording outlines the full extent of the Owner Builder liability for breaches of the statutory warranties.
State Legislation
The “Western Australia – Home Building Contracts Act 1991” state legislation governs the requirements of owner builders with regards to selling their properties and obtaining Residential Owner Builder Insurance.
How do I apply for a QBE Owner Builders’ Warranty Policy?
Please download and complete the Owner Builder Application Form available on this website in full; please refer to the Owner Builder Checklist which is a reference guide for all Owner Builders. Then submit your application form to JLT BISWA (refer to the contact link on this website).
Western Australian Government Web-site
For more information please refer to http://www.docep.wa.gov.au/
Underwriting Guidelines
The "standard approach" to underwriting Residential Owner Builders’ Warranty Insurance takes into account all of the following listed individual areas.
APPLICATION FORM
The Application form must be completed in full and signed by applicant(s) / Property Owners in all cases.
ADDITIONAL INFORMATIONAL REQUIREMENTS
- Copy of Building Permit.
- Copy of Certificate of Occupancy or Final Notice of Completion.
- Copy of Certificate of Title / Council Rates Notice.
- Copy of Termite Treatment Report Pest / Inspection Report if applicable.
- Copy of Electrical and Plumbing Compliance Certificates.
These requirements for additional information are required in all cases.
PERSONAL & BUSINESS BACKGROUND INFORMATION
- Due to the nature of the insurance product the insurer takes into account previous liquidations, bankruptcy, receiverships and scheme of arrangements.
Negative background informational checks can be detrimental to the application.
ACCEPTABLE TECHNICAL QUALIFICATIONS
- External trade or owner builder qualifications (inclusive of governments approved owner builder course).
Technical and owner builder qualifications are highly regarded.
BUILDING INSPECTION ON COMPLETED DWELLING
The building inspector report on the completed dwelling will indicate the quality of the building works, the use of second hand materials and whether or not the works are complete. The building inspector report becomes an attachment to this policy and any use of second hand materials or defective workmanship that is declared or described in the Building Report becomes part of the Owner Builder Insurance Policy.
OWNER BUILDERS INDEMNITY TO THE INSURER
I / We will reimburse QBE any monies that QBE pays to the Insured in settlement of a claim under the policy if I / We fail to comply with any laws or regulations relating to the building work and / or for used second hand materials which were not declared in this form or to the prescribed building inspector and if not so noted in the prescribed building inspectors report or in the contract of sale and / or not carried out the works in a proper and workmanlike manner.
The above guidelines are a minimum indication on how QBE approaches underwriting Residential Owner Builders’ Warranty Insurance Product. All applications will be assessed on their own merit and QBE will take into account all of the individual circumstances presented and any additional that may be warranted given the perceived complexity of the application.