OWNER BUILDER

Warranty INSURANCE

Selling your home in Victoria


Owner Builder Home Warranty Insurance is a mandatory Insurance policy that Owner Builders selling their home are required to provide to the purchaser.

It protects purchasers in the event the Owner Builders dies, disappears or becomes insolvent and is unable to fix defective work during the statutory period.

In Victoria, the statutory period of insurance is 6 years for structural defects and 2 years for non-structural. Commencement period is from the Certificate of Occupancy or Certificate of Final Inspection.

Builder are required to supply Builders Warranty to homeowners as well, this is basically the same product.

Owner Builders are under the mistaken belief that Owner Builder Warranty Insurance is required to be provided at any time up to settlement. Yes, but if the Owner Builder signs the contract without attaching the Warranty Certificate, the purchaser is FREE to walk away from the contract at any time up to settlement.

Under 137B of the Building Act, a defect report is required to be also attached to the Owner Builder Warranty Insurance Certificate.

The report will list defects, incomplete works and second-hand building materials.
Anything listed in the report is NOT Claimable.

All Owner Builder work requires a Defect Report regardless of the statutory minimum value required for Owner Builder Warranty Insurance.

BE AWARE that Owner Builder Warranty Insurance is required for ALL Owner Builder work, so even though the Owner Builder did not get a permit if the value of the work is over $16 000 Owner Builder Warranty Insurance is required to be provided to the purchaser.

HOME Warranty Insurance is required if the Value of the work exceeded $16 000.
The experienced AOBIS underwriters have been there since the inception of the Builders Warranty Scheme.
You are in the hands of the experts.

SUPER FAST TURNAROUND - 1 HR DELIVERY!
If all required documents are supplied, you can have the policy within the hour.

Policy covers:

Purchaser Owner Builder Work
Covered for up to $300k 2 Years non structural or 6 years structural
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 Permit Certificate of Occupancy or Certificate of Final Inspection
Drivers Licence Complete and sign Owner Builder Warranty Application form

Process:

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

Step 2: Fully complete:

  • Application form
  • Building Permit
  • Certificate of Occupancy or Certificate of Final Inspection
  • Drivers Licence
  • Defect Inspection Report from an approved inspector with P.I insurance

Step 3: Email your documents for approval.

Owner Builder Warranty Insurance:

• Fast Turnaround.
• Few Documents.
• Underwriting Authority
• Policy within the hour.
• Expert advice for non-standard applications.

FAQs

Frequently Asked Questions

Welcome to our FAQs section, we have answered your questions here.
If you can’t find the answer you’re looking for? Get in touch with us.

Domestic building insurance 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.
The Building Act 1993, requires owner builders who sell their property to obtain Owner Builder Warranty Insurance. The insurance is to cover the purchaser in the event of faulty workmanship. The period of warranty is for 6 years from the issuing of the certificate of occupancy or certificate of final completion. For example, if the property is sold 2 years after certificates were issued, warranty insurance would be required for the remaining 4 years. You will also be required to obtain a Defect Inspection Report, these are valid for 6 months.
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.
  • Virtually any work that required a building permit and some that did not. This includes any new home, renovation/alteration/extension, improvements and repairs to the home, garages, carport, sheds, pools.
  • Owner-renovator work
Owner Builder Warranty covers the purchaser, or any subsequent purchaser, of the property for the balance of the 6 years period after the final or occupancy certificate was issued if the owner builder dies, disappears or becomes insolvent, however defects, incomplete works or second hand materials noted in the defects report are exempt.
Owner Builder Warranty is only required where the cost of the works is over $16,000. Below this amount it is not a legislative requirement, but you will still need to provide a Defect Report. Even if the original works did not require a permit the $16,000 threshold still applies.
If Owner Builder Warranty 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

6 years from the Certificate of Occupancy or Certificate of Final Inspection

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