Home warranty insurance in NSW is now called Home Building Compensation (HBC) cover, and as of October 2026 SIRA says a builder or tradie must buy it for residential work over $20,000 (including GST) and give you the certificate before taking any money or starting work. You can check a certificate for free on the HBC Check register at verify.licence.nsw.gov.au. SIRA says the cover pays up to $340,000 if the builder becomes insolvent, dies, disappears or has their licence suspended for not paying a court or tribunal order.
- HBC cover is required in NSW for residential building work over $20,000 including GST (SIRA, checked October 2026).
- The builder must give you the HBC certificate before asking for any payment, including a deposit, and before work starts.
- Check the certificate on HBC Check (verify.licence.nsw.gov.au/home/HBCF); the old hbccheck.nsw.gov.au address now redirects there.
- SIRA says homeowners are insured for up to $340,000, with 6 years for major defects and 2 years for other losses from completion.
- HBC is a last resort: it only pays if the builder has died, become insolvent, disappeared or had their licence suspended over an unpaid money order.
What is home warranty insurance in NSW?
Home warranty insurance is the old name for Home Building Compensation (HBC) insurance. SIRA, the NSW insurance regulator, says HBC was previously known as home warranty insurance. You may also see it called HBCF, after the icare Home Building Compensation Fund that issues it.
HBC protects you as a last resort. It pays when a building business cannot finish your job or fix defects because it has become insolvent, the owner has died or disappeared, or its licence has been suspended for not paying a court or tribunal order in your favour.
Your builder buys the cover, not you. It is issued for each job, and you get a certificate of insurance for your property. Service NSW says icare HBCF is the only insurer offering HBC cover.
When is home warranty insurance required in NSW?
HBC is required for residential building work over $20,000, including GST, unless the work is exempt. SIRA says this applies when a building business or tradie contracts with a homeowner for:
- new homes and new apartment buildings up to three storeys
- renovations of any home building, whatever its height
- swimming pools
Service NSW adds that garages, spas and outbuildings are covered too. A subcontractor working for another licensed contractor does not need its own cover. The table shows how HBC fits with the other NSW rules that change at each job value.
| Job value (incl. GST) | Contractor licence | Written contract | Deposit limit | HBC insurance | Cooling-off |
|---|---|---|---|---|---|
| $5,000 or less | Needed for specialist work only (electrical, plumbing, draining, gasfitting, air-con and refrigeration) | Not required | No set limit; terms should be fair and reasonable | Not required | None set |
| Over $5,000 to $20,000 | Needed, in the right category | Small job contract | Up to 10% | Not required | None set for small jobs |
| Over $20,000 | Needed, in the right category | Large job contract, price on the first page | Up to 10%, and nothing until the HBC certificate is given | Required before any payment or work | 5 clear business days |
Sources: SIRA HBC pages; NSW Government contracts page (updated April 2026) and choosing a builder guide (updated July 2026). The contracts page does not say whether its $20,000 large-contract figure includes GST; the SIRA HBC threshold does.
When must the builder give me the HBC certificate?
Before they ask for or take any money, including a deposit, and before they start work. SIRA also says the contract must include information about the HBC insurance.
Service NSW says failing to give the certificate before taking a deposit or starting work is an offence under NSW law. The NSW Government contracts page says the same: no deposit or other payment until the cover is in place and you have the certificate.
Do not pay a deposit on a job over $20,000 until you hold the HBC certificate and have found it on HBC Check. A builder who asks for money first is breaking NSW law, and money paid that way may not be protected.
How do I check builders insurance in NSW?
Use the free HBC Check register on Verify NSW. It takes a few minutes. We checked the steps below on 20 October 2026. Both the old hbccheck.nsw.gov.au address and icare’s certificates register link now redirect to it.
- Get the certificate of insurance from your builder. It should come with your contract.
- Open HBC Check at verify.licence.nsw.gov.au/home/HBCF.
- Search by the certificate number if you have it. The register’s own tips say this is the best way. You can also search by builder name or licence number, or use Advanced search for the property address (street number, street name, then suburb).
- Read the record. It shows the certificate number, the licence number or name of the insured principal contractor, and the property address. Any claims paid on the certificate are listed too.
- Match the details. The business name on the certificate must match the business on your contract, and the address must be your property.
- Check the builder’s licence is current on Verify NSW. Our builders licence check guide walks through it.
- If you cannot find the record, or the details are wrong, call the icare HBCF Customer Support Team on (02) 8378 0560 before you pay.
The register warns that some records may be missing, attached to the wrong property or incomplete. SIRA recommends confirming cover with icare if anything looks wrong. A record also does not prove the policy covers every part of your contracted work, so check the description of the work.
For the licence part of the check, see Builders Licence Check NSW: How to Verify a Builder in 5 Steps.
What does HBC insurance cover?
SIRA says you are insured for up to $340,000 (limits apply) if the business doing your work cannot meet its obligations. Cover runs for 6 years for major defects and 2 years for other losses from completion. For a lost deposit or incomplete work, cover runs for 12 months after the builder fails to start or stops work.
SIRA lists these as covered:
- incomplete work after the contract is ended
- breaches of statutory warranty, such as work without due care and skill, work that does not match the plans, unsuitable materials, or work not finished on time
- faulty design by the building business
- alternative accommodation, moving and storage costs
- lost deposits or progress payments
- legal or other costs of seeking compensation, and the cost to fix the loss or damage
- problems caused by the builder’s subcontractors
What does home warranty insurance not cover?
HBC is not a general warranty you can claim on whenever there is a problem. You can only claim if the builder has died, become insolvent, disappeared or had their licence suspended over an unpaid money order. If your builder is still trading, raise defects with them first in writing, then with Building Commission NSW.
The NSW Government says these payments may not be recoverable:
- deposits above the 10% limit
- upfront payments for plans or other work before the contract
- progress payments made early or outside the contract schedule
Some work is exempt and has no HBC cover at all. SIRA’s list (updated March 2026) includes contracts under $20,000, built-in furniture work, and new buildings over three storeys that contain multiple units.
HBC also does not replace other insurance. Damage to materials during the job, or an injury on your property, falls under the policies in the next section.
How do I check a builder’s public liability insurance?
Ask for a certificate of currency and check it before you sign. The NSW Government says public liability insurance covers the builder if anyone is injured because of the work. Without it, you could be liable because you own the property.
On the certificate, check that the insured name matches your contract, the policy dates cover your whole job, and the type of work suits your project. If anything looks unclear, call the insurer named on the certificate. The NSW Government also suggests checking with your own home insurer or broker before you sign.
| Insurance | Who holds it | What it covers | How to check |
|---|---|---|---|
| Home Building Compensation (HBC) | Builder, for each job over $20,000 | Incomplete or defective work if the builder dies, becomes insolvent, disappears or has their licence suspended | Certificate before any payment; search HBC Check |
| Public liability | Builder or tradie | Injury to people or damage to property caused by the work | Certificate of currency; confirm with the insurer |
| Workers compensation | Each employer on site | Injuries to workers | Ask the builder; SIRA can explain the rules |
| Contract works | Builder | Loss of or damage to materials and work during the job | Ask for the policy details |
| Home and contents | You | Your own home and belongings | Tell your insurer about the works before you sign |
Sources: SIRA; NSW Government, insurance requirements for contractors working on your home. Checked 20 October 2026.
Is $340,000 of cover enough?
It may not be for a large job. In August 2024 the NSW Government said the $340,000 maximum was set more than 10 years ago and that building costs had risen about 60% since then. It started a review of the scheme.
As of October 2026, SIRA’s homeowner page still lists cover of up to $340,000. If your project is large, keep payments in line with the contract schedule. That way less of your money is at risk if something goes wrong.
What should I do if my builder goes broke?
Stop paying, keep your records, and contact icare HBCF as soon as you can. SIRA’s claims pages tell homeowners to notify the insurer quickly. Keep a copy of your contract, the HBC certificate, receipts for every payment, and photos of the work.
Payments that followed the contract schedule are the easiest to recover. Payments made early, or outside the contract schedule, may not be recoverable.
Get quotes from licensed and insured trades
Planning a renovation or extension over $20,000? Describe your job to MyTradeCrew, and we will send it to up to three vetted, licensed and insured local trades from our crew. They quote and contract with you directly. You should still check the HBC certificate yourself before you pay. Our guide to choosing a builder covers the other checks: How to Choose a Builder in Sydney: 10-Point Checklist.
Frequently asked questions
Who pays for home building compensation insurance?
The builder or tradie buys the cover from icare HBCF for each job over $20,000. Getting it is their legal duty, and you should not be asked to arrange it yourself. The cost of the premium may be built into your quote, so ask how it is handled if you want to compare quotes line by line.
Does a bathroom or kitchen renovation need HBC insurance?
Yes, if the contract is over $20,000 including GST. SIRA says renovations of any home building need cover, whatever its height. A job that is only built-in furniture, such as some joinery work, may be exempt under the Home Building Regulation. Ask your contractor which applies and get it in writing.
Am I covered if I buy a recently renovated home?
SIRA says buyers of a recently built or renovated home are covered for the rest of the warranty period. Check that a certificate is included with the contract for sale, and ask your solicitor or conveyancer if you are unsure. You can also search the certificate on HBC Check to see if any claims have been paid.
Can I see if a builder has had HBC claims paid?
Yes, in part. When you search HBC Check by builder name, licence number or certificate number, the register lists the certificates it holds. It also shows details of claims paid on a certificate, such as a description, the date accepted and the amount paid. Some builders have many records, so searching by certificate number is quicker.
What if my builder says the insurance is still being processed?
Do not pay anything yet. NSW law says the builder cannot ask for or take a deposit or any other payment until the cover is in place and you have the certificate. Wait until you have the certificate and have found it on HBC Check. A genuine builder will understand.
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