What Does QBCC Insurance Cover?

If you’re building or renovating a home in Queensland, you’ve probably heard about (or paid for) QBCC insurance. But what does it actually cover, and when can you rely on it?

The Queensland Home Warranty Scheme, managed by the Queensland Building and Construction Commission (QBCC), is designed to provide protection for homeowners if something goes wrong with residential building work. Eligible building projects carried out by licensed contractors are generally covered once the insurance premium has been paid.

When the Builder Can’t Finish the Work

QBCC insurance can provide financial protection if your builder is unable to complete the work because they have died, disappeared or become insolvent. In these situations, the scheme may help cover the reasonable cost of completing the unfinished work, subject to the policy terms and maximum claim limits.

Cover for Defective Work

The insurance can also cover defective building work. If your builder fails to rectify defects within the required timeframes, and certain conditions are met, you may be able to lodge a claim under the scheme. However, it is very important to remember that homeowners are generally expected to give the builder an opportunity to inspect and rectify the defects before making an insurance claim.

What Isn’t Covered

It’s important to understand that QBCC insurance does not cover every problem that may arise during a building project. Issues such as general maintenance, fair wear and tear, owner-supplied materials, contractual disputes or changes in property value are not covered by the insurance.

The limit of the cover is generally $200,000, increasing to $300,000 if you pay for an extended policy.

Before You Sign a Building Contract

Before signing a building contract, it is important to check that your builder is licensed and that QBCC insurance has been taken out for your project. You should also be sent a copy of the insurance and a detailed cover letter by the QBCC. Make sure you keep copies of your building contract, insurance details and all project documentation throughout your build — it helps to keep this in one file so that it is easy to find.

A Safety Net, Not a Catch-All

Understanding what QBCC insurance does — and doesn’t — cover can help you know your options if major problems arise, but it will generally not pay out for minor issues throughout construction. It is designed to be a safety net for consumers.