Home Warranty

CRM Brokers is an authorised broker for QBE Insurance (Australia) Limited and RBUA, an approved insurance agent authorised to provide home warranty insurance services on behalf of the NSW Home Warranty Insurance Fund for residential building work under the NSW Home Building Act 1989.

We have been arranging home warranty insurance since 1997 for builders, trade contractors and owner-builders under the guidance of the Market Practice Guidelines made under section 91A of the Home Building Act 1989 (amended 1 July 2010). We understand the importance of obtaining cover in the quickest possible time frame. From day one, we will work with you to ensure we extract the information that’s required by the approved insurance agent to ensure a timely completion of your application in order to gain Eligibility.

Information for licensees

Home warranty insurance needs to be provided by:

  • A builder or trades person before taking any money (including a deposit) from a home owner (including an owner-builder) under a residential building contract and before starting any work under that contract
  • A ‘spec’ builder before starting any residential building work on a property owned by the builder
  • A developer before entering into a contract for the sale of a property on which a builder is doing or has done residential building work for the developer
  • An owner-builder (i.e. a home owner who did owner-builder work under an owner-builder permit) before entering into a contract for sale of the property on which residential building was done within the previous 6 years.

Insurance threshold

From 1 February 2012, home warranty insurance is required to be obtained where the contract price is over $20,000 or, if the contract price is not known, the reasonable market cost of the labour and materials involved is over $20,000.


Where the contract price or the reasonable market cost of the labour and materials involved does not exceed the above threshold, there is no legal requirement for home warranty insurance to be obtained.


Contractors who carry out residential building work must still hold an appropriate licence with Fair Trading where the labour and materials involved are valued at over $1,000.


Persons who contract and/or carry out specialist work (i.e. electrical wiring, plumbing, gas-fitting, air-conditioning and refrigeration) require a licence regardless of the value of the work.

Periods and types of cover

Home warranty insurance provides a set period of cover for loss caused by defective or incomplete work in the event of the death, disappearance or insolvency of the contractor.


Home warranty insurance policies issued from 19 May 2009 also enable home owners to claim on the policy where the licence of the builder or tradesperson responsible for the work is suspended or cancelled for failing to comply with a money (compensation) order made by the Consumer, Trader and Tenancy Tribunal or a Court.


Cover for loss arising from defective work is provided for a period of:

  • 6 years from the date of completion of the work or the end of the contract for the work (whichever is the later) for loss arising from a structural defect, and
  • 2 years for loss arising otherwise than from a structural defect.


An additional 6 months cover applies in cases where the loss becomes apparent in the final 6 months of the period of insurance. The 6-month period starts from the date of the loss becoming apparent. Cover is also provided for loss arising from non-completion of work for a period of 12 months after the failure to commence, or cessation of, the work.

Applications Forms & Policy Wordings

Please refer to the Application Forms, Policy Wordings and Guides and Procedures documentation for builders, trade contractors and owner-builders as well as information on the Managed Builder Program (MPB).


Licensees must contact this office to obtain policies and certificates of insurance for construction projects.
IMPORTANT NOTE: All documents must be returned to CRM Brokers for evaluation and cannot be sent directly to the approved insurance agent.

1. Download the document that’s appropriate for you

2. Fill out the form

3. Email to CRM Brokers