When embarking on a new build, renovation, or extension project, one of the most important — yet often misunderstood — aspects is Home Building Compensation Fund (HBCF) insurance . For homeowners and builders alike, understanding what HBCF is and why it’s compulsory for most residential projects over $20,000 can save time, stress — and potentially thousands of dollars. At Auswide Insurance Brokers , we often get asked: “Do I really need this insurance?” The short answer is yes — and there’s a very good reason why it’s mandatory . What Is HBCF? The Home Building Compensation Fund (HBCF) is a government-mandated insurance scheme in New South Wales designed to protect homeowners when building work doesn’t go as planned. It provides a financial safety net if your builder or contractor can’t complete or fix work they’ve been contracted to do — particularly in situations where the builder: Becomes insolvent (goes bankrupt), Dies or disappears, Has their licence suspended due to failu...
Building or renovating a home is one of the biggest investments most Australians will ever make. While choosing the right builder is critical, it’s just as important to understand the protections in place if something goes wrong. One of the most important safeguards for homeowners in NSW is the Home Building Compensation Fund (HBCF) . What is the Home Building Compensation Fund (HBCF)? The Home Building Compensation Fund (HBCF) is a compulsory insurance scheme in New South Wales that protects homeowners when residential building work goes wrong and the builder is unable to fix it. In simple terms, HBCF provides cover if a licensed builder or tradesperson: Dies Disappears Becomes insolvent If any of these events occur and defective or incomplete work remains, the HBCF policy allows homeowners to claim compensation to help complete or rectify the work. When is HBCF required? HBCF insurance is mandatory for residential building work valued over $20,000 (including GST) in NSW. Buil...