Home warranty insurance explained by the Queensland
Building and Construction Commission
Most residential building work done in Queensland valued over $3,300 (including labour and
materials) must have home warranty insurance.
As part of the building process, the builder(painting contractor) pays a premium to us to insure the
construction. The amount is included as part of your contract, and is paid before work begins.
It may protect you where:
- a licensed builder(painting contractor) does not complete the contracted residential
construction work and you have terminated the contract
- the contractor fails to rectify defective work
- the building suffers from subsidence or settlement.
If we pay out on a claim, we pursue the builder(painting contractor) to recover the claim
What coverage is provided for painting?
The Scheme covers consumers for loss suffered if a contractor (or an individual where fraud or certain representations are made) fails to complete a contract for residential work or fails to rectify defective work.
The terms of cover, however, contain certain limitations and restrictions. This generally means that incomplete or defective painting work will be covered by the Scheme. The Scheme does not cover defective products, however.
For example, a defective batch of paint resulting in peeling will not be covered, however, using the incorrect paint for an area resulting in peeling will be covered. Non-structural defects like painting are generally covered for six months after the day the work is completed. Consumers must lodge the claim with the QBCC within seven months of the completion date.
For more information go to http://www.qbcc.qld.gov.au/home-warranty-insurance/overview