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What is HBCF? What you need to know

 Home Warranty Insurance is an essential safeguard for homeowners in New South Wales, ensuring protection against financial loss due to incomplete or defective residential building work. If you're embarking on a building project valued at over $20,000 in NSW, understanding Home Warranty Insurance—formally known as the Home Building Compensation Fund (HBCF)—will help you secure your investment and peace of mind.

What is Home Warranty Insurance (HBCF)?

Home Warranty Insurance (HBCF) is a mandatory safety net for homeowners in NSW. It provides cover if the builder or tradesperson is unable to complete the work due to insolvency, death, disappearance, or licence suspension, or if you’re unable to recover costs for defective work . This insurance must be obtained and evidenced before any residential building work starts or any project payments, including deposits, are made.



Who Needs Home Warranty Insurance?

  • Licensed builders and tradespeople undertaking projects over $20,000 in NSW are legally required to secure HBCF cover.

  • Developer contracts and ‘spec’ builders must also obtain HBCF insurance prior to starting work or entering a sale agreement for new homes.

  • Exceptions include projects under $20,000 and new multi-storey residential buildings with more than three storeys and at least two separate dwellings.

How to Claim Under HBCF

If you suffer financial loss due to incomplete works or defective construction and cannot resolve the issue with the builder, you can lodge a claim with the insurer. Notify the insurer in writing as soon as you identify a problem during the insurance period. The claim can extend to subsequent property owners, provided no prior claim has exhausted the policy.

Exemptions

  • No insurance is needed for projects under $20,000.

  • Certain government building works and stand-alone contracts for interior paintwork, built-in furniture, and specific landscape features are exempt.

  • New multi-storey developments (over three storeys) are not covered; however, repairs or additions to existing multi-storey residential buildings do require insurance.

Ensuring Compliance

Before making any payments or starting building work, verify the builder’s certificate of insurance. Use the contacts on the certificate or the HBCF certificates register to confirm validity. Council approvals also require notification of builder insurance status.



Why Choose Remedial for Home Warranty Claims?

Remedial Building Services specialises in rectification work under Home Warranty Insurance, collaborating with insurers, engineers, and consultants to deliver quality results on all building defect repairs—from waterproofing to structural remediation. Both homeowners and insurers can expect attentive service and skilled workmanship to restore the integrity and value of their property.

For more details, refer to Remedial Building Services' comprehensive guide on HBCF claims: What is HBCF insurance claims?

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