In Australia, a home warranty, often referred to as builders warranty insurance or home warranty insurance, is a type of protection designed to cover structural defects and major faults in new homes, renovations or extensions. This warranty is typically mandatory in most states and territories for residential building works over a certain value and it is usually arranged by the builder on behalf of the homeowner. It protects the homeowner if the builder dies, disappears or becomes insolvent before completing the work or fixing defects during the warranty period.
Australian home warranties mainly cover major structural components such as foundations, walls, roofing and waterproofing. Depending on state regulations, the coverage period can vary, commonly six years for structural defects and two years for nonstructural defects. It is important to note that this insurance does not cover general wear and tear or issues resulting from homeowner negligence. In addition to statutory builders warranty insurance, homeowners can also consider optional service contracts from private warranty providers that cover appliances and internal systems such as plumbing, air conditioning and electrical, similar to warranties found in the UK and US markets.
When selecting a home warranty provider in Australia, start by confirming what is legally required in your state, such as through NSW Fair Trading, Victoria’s Domestic Building Insurance or Queensland’s QBCC Home Warranty Insurance. If exploring private home service contracts, compare inclusions, exclusions, limits on claims and whether the company has a local repair network. Look for providers with strong reputations and clear policy documentation. Choosing the right warranty ensures not only compliance with regulations but also long term peace of mind as a homeowner.
