OWNER BUILDER

INDEMNITY INSURANCE

Selling your home in WA


Owner Builder Home Indemnity Insurance is required in Western Australia when an owner builder sells their dwelling within the Statutory Indemnity period.

The Period of Cover is 7 years from the Building License Issue date. Home Indemnity Insurance covers Residential/Domestic Building Work. Multi Unit developments exceeding 3 stories and fully leased retirement villages and pools are exempt from obtaining Home Indemnity Insurance.

The minimum value of works required to obtain Home Indemnity Insurance is $20,000. The maximum amount that can be claimed under a Home Indemnity Insurance policy is the value of contract work with a limit of $100,000.The purchaser and any subsequent purchaser of the home, not the actual owner builder, can claim on their Indemnity Policy if the owner builder has become insolvent, died or disappeared.

Home Indemnity Insurance only covers defects, which are not identified in the Inspection Report that are identified within the 7 year Statutory Indemnity period. Failure to provide this insurance prior to selling the property can result in fines up to $10,000. If a contract of sale has been entered into without providing the Indemnity Insurance, the purchaser has rights to pull out of the sale prior to completion of the contract.

Policy covers:

Purchaser Owner Builder Work
Covered for up to $100k Period of cover is 7 years from the Building Licence
Defects report required Coverage for structural and non-structural

What we require:

Cost of residential Owner Builder works Current Defects Report, prepared by an approved Building Inspector
Building Licence from Council Owner Builder BRB/Owner Builder certificate
Drivers Licence Complete and sign Owner Builder Indemnity Application form

Process:

Step 1: Obtain a defects inspection report from an approved inspector.

Step 2: Fully complete:

  • Application form
  • Owner Builder Building Licence
  • BRB/Owner Builder Certificate
  • Drivers Licence
  • Defect Inspection Report from an approved inspector with P.I insurance

Step 3: Email your documents for approval.

FAQs

Frequently Asked Questions

Welcome to our FAQs section, we have answered your questions here.
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It is for the benefit of the subsequent purchaser of your property, not you as the Owner Builder. The policy covers the subsequent owner in the event that you as the Owner Builder dies, disappears or is insolvent, and the building works are incomplete or defective.
You can be fined if you sell without it. The purchaser can walk away with no consequences if the warranty is not in place when the contract of sale is signed. You lose the sale!
It is an inspection report by a prescribed inspector who will list any defects, incomplete work and second hand building materials. These are not claimable by the purchaser the report forms part of the documents required before the insurance can be issued.
The sale of your home is important! Our aim is to provide a fast, responsive and professional service that makes obtaining the insurance easy.

  • Owner builders require a defects inspection report prior to the sale of their home on which owner builder works have taken place.
  • The report must be from a qualified expert such as a building consultant/inspector, building surveyor, architect or engineer who must have a valid professional indemnity policy in place at the time of signing the report and who authorises the report being made available to third parties.
  • All defects, incomplete works, inaccessible areas and second hand materials should be described covering the dwelling/s as well as outbuilding, pergolas, landscaping, pool etc.
The report must not be more than 6 months before the person enters into the contract to sell.
7 years from the Building Licence.
Owner Builder Home Indemnity Insurance is required in Western Australia when an owner builder sells their dwelling within the Statutory Indemnity period. The Period of Cover is 7 years from the Building Licence issue date.
Home Indemnity Insurance only cover defects, which are not identified in the Inspection Report that are identified within the 7 year Statutory Indemnity period
The minimum value of works required to obtain Home Indemnity Insurance is $20,000 in WA.
The maximum amount that can be claimed under a Home Indemnity Insurance policy is the value of the contract work with a limit of $100,000.
If Owner Builder Indemnity Insurance is not obtained and your property is sold you risk fines and penalties of up to $10,000. The prospective purchaser also has the right to pull out of the sale agreement without any penalties.
Obtaining Owner Builder Warranty or Indemnity Insurance is a LEGAL responsibility. As an Owner Builder/renovator it pays to be aware of all your liabilities.

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