Insurables — Australian business risk, sourced and dated

Statutory scheme · New South Wales · NSW

Home Building Compensation Fund (NSW)

New South Wales statutory last-resort cover for homeowners where a builder cannot complete or rectify residential work.

Data as at · refreshed by scripts/seed-graph.mjs

What the scheme requires

  • Work value threshold: HBC insurance (HBCF cover) is required for most NSW residential building projects over $20,000 including GST; the threshold is the total contract price or the market cost of labour and materials. NSW · effective 2026-08-13 icare NSW · 2026-08-13
  • Who pays premium: The builder pays the HBCF premium when applying for a Certificate of Insurance for each project; cover must be held before starting work or taking any payment, including a deposit. NSW · effective 2026-08-13 icare NSW · 2026-08-13
  • Premium basis: Risk-based pricing: published base rates per construction type (H01-H05) applied to total contract value, adjusted by location (20% rural discount) and a builder-specific loading or discount, per icare's HBCF premium guidelines. NSW · effective 2025-11-01 icare NSW · 2026-08-13
  • Certificate issued to: Called a Certificate of Insurance; issued per project to the builder, who gives the homeowner a copy before work or payment. Cover for a property can be checked on the public HBCF Certificates Register (Verify NSW). NSW · effective 2026-08-13 icare NSW · 2026-08-13
  • Cover scope: Last-resort cover for homeowner loss from incomplete or defective work after a trigger event (builder insolvency, death, disappearance or licence suspension); major defects covered 6 years, other defects 2 years; limit $340,000 per policy. NSW · effective 2026-08-13 icare NSW · 2026-08-13
  • Variation treatment: If contract value or scope changes after issue, the certificate may need updating via the HBCF Portal or a Service Provider; if the value of work increases without an update, the builder may be asked to pay extra premium later. NSW · effective 2026-08-13 icare NSW · 2026-08-13

Who administers it

  • icare — The New South Wales state insurer, which includes the nominal insurer for workers compensation and the home building compensation fund.
  • State Insurance Regulatory Authority — Regulates the New South Wales workers compensation, motor accidents and home building compensation schemes.

What this scheme does not do

Scheme cover and a business’s own insurance answer different questions. A residential building scheme protects the homeowner when work is defective or unfinished; it does not cover the contractor’s liability to third parties or the contractor’s own losses.

Sources