Insurance and Owner Builder


Home warranty insurance

Home warranty insurance needs to be provided by:

  • a builder or tradesperson before taking any money (including a deposit) from a home owner (including an owner-builder) under a residential building contract and before starting any work under that contract;
  • a ‘spec’ builder before starting any residential building work on a property owned by the builder;
  • a developer before entering into a contract for the sale of a property on which a builder is doing or has done residential building work for the developer; and
  • an owner-builder (i.e. a home owner who did owner-builder work under an owner-builder permit) before entering into a contract for sale of the property on which residential building work was done within the previous 6 years.

Home warranty insurance is required to be obtained where the contract price is over $20,000 or, if the contract price is not known, the reasonable market cost of the labour and materials involved is over $20,000.

For further information on Insurance matters, please contact the Department of Fair Trading.

Owner Builder Permits

Owner-builder work is any work (including supervision and co-ordination) involved in the construction of, or alterations, repairs or additions to, a dwelling (which includes a house, terrace, town-house, garage, swimming pool and certain other structures and improvements):

  • Where the reasonable market cost (including labour and materials) exceeds $5000; and
  • Which relate to a single dwelling or dual occupancy
  • that requires development consent under Part 4 of the Environmental Planning and Assessment Act 1979, or
  • that is a complying development within the meaning of that Act.

For further information on Owner Builder matters, please contact the Department of Fair Trading.