What Is HBCF?
Home Building Compensation Fund (formerly Home Warranty Insurance) protects homeowners when a builder:
- Dies
- Disappears
- Becomes insolvent
- Has license suspended
When It's Required
- NSW: Work over $20,000
- VIC: Work over $16,000
- QLD: Premium home building work
- Other states: Check local requirements
What It Covers
- Incomplete work if builder can't finish
- Defects in structural work (6 years)
- Defects in non-structural work (2 years)
- Coverage up to $340,000 (NSW)
Important Points
- Certificate must be issued BEFORE work starts
- Builder is responsible for obtaining it
- You should receive a copy
- Check it's valid and covers your work
What It Doesn't Cover
- Work done without required insurance
- Owner-builder work
- Commercial buildings
- Normal wear and tear