Home Warranty

Home Warranty Insurance is required to be taken out as per section 93 of the Home Building Act for the supply of a kit home, where the work is valued at over $12,000.00...

Home Warranty Information 1. Home Warranty Insurance is required to be taken out as per section 93 of the Home Building Act for the supply of a kit home, where the work is valued at over $12,000.00. Insurance must be obtained by the retailer of the kit home and a certificate given to the owner, prior to taking any money on the contract, and prior to supplying the kit home. In summary, Home Warranty Insurance must be provided before:

a) Taking money on the contract, including a deposit.

b) Commencing any works.

c) Supplying the kit home.

2. Home Warranty Insurance allows for a claim to be made where the contractor, or supplier of the kit home, has become insolvent, disappeared or died. In this case, the home owner is covered for:

a) Structural defects for a period of six (6) years, after the completion of the work.

b) Non-structural defects for a period of two (2) years, after the completion of the work.

c) Incomplete work, (for an amount up to 20% of the contract price with a $200,000.00 limit) for a period of twelve months after failure to start or cessation of work.

3. If the value of the building work, or supply of the kit home, is valued at less than $12,000.00 there is no legal obligation to provide a certificate of Home Warranty Insurance. However, the company who carries out this work, or supply of the kit home, must still hold the appropriate license with NSW Office of Fair Trading, where the labour and materials exceed $1,000.00. Stone Homes Home Warranty Information. (Much of this information was derived from NSW Office of Fair Trading web site). For more up-to-date information please visit: www.fairtrading.nsw.gov.au