Did You Know You Have Home Warranty Insurance Obligations As A Trade Contractor?

As a QBCC licensed contractor it is compulsory for you to participate in the Queensland Home Warranty Scheme, which is a not-for-profit insurance scheme funded through premium payments and administered by the Queensland Building and Construction Commission (QBCC).

The scheme is in place to cover homeowners for loss suffered if their contractor fails to complete contracted works or rectify defects.

Contractors, including trade contractors such as plumbers and drainers, must collect the insurance premium from the homeowner and pay it to the QBCC for any insurable residential construction work they perform.

Work you do directly for an owner is insurable if the value of work is more than $3,300 (including cost of materials even if you did not provide them, labour and GST). Examples include replacing or refitting fixtures in a kitchen or bathroom, guttering, wastewater or sewerage systems, water tanks that are the primary water supply for a residence or a project that requires a plumbing approval. However, hot water systems are excluded. Work for an Owner Builder or work you do as a subcontractor is also excluded, as only the principal contractor has the obligation to collect and pay premium.

The insurance premium should be included in the contract price and must be paid to the QBCC within 10 business days of entering into a contract and before residential construction work commences.

You may face penalties if you are found to be not paying home warranty insurance premiums to the QBCC on time.

Visit the QBCC website to find out more about home warranty insurance including:

• what work requires insurance
• calculating the premium
• how to take out cover
• what happens after you raise a policy.

Home warranty insurance obligations