How to Claim on the Queensland Home Warranty Scheme

What it is

The Queensland Home Warranty Scheme (QHWS) is administered directly by the Queensland Building and Construction Commission (QBCC). Unlike NSW's icare or the private insurance model that ran in Victoria pre-1-July-2026, Queensland's scheme is a government-administered fund with QBCC as the insurer, regulator and claims handler in one office.

Cover is compulsory for insurable residential construction work over $3,300, on homes and units up to 3 storeys plus pools. The builder pays the premium to QBCC before starting work or within 10 business days of signing, whichever is earlier.

Cover structure

Cover is organised in three categories, each with its own $200,000 cap:

• non-completion: work not finished when the trigger event occurred
• defects: work completed but defective within the applicable warranty period
• subsidence: settlement-related structural damage

Optional additional cover of $100,000 per category (bringing each cap to $300,000) is available on request.

The three-category structure is unusual. Other Australian schemes typically run a single overall cap. Queensland's split lets a claim run against multiple categories in a single loss event, so a builder collapse mid-build with structural defects and settlement issues can trigger claims across all three.

Trigger events

QBCC pays QHWS claims where the builder has:

• died
• disappeared and cannot be found after reasonable enquiries
• become insolvent (bankruptcy for a natural person; wound up or in external administration for a company)
• had a licence cancelled or suspended

A defect notification on its own does not trigger QHWS. Where the builder is solvent, licensed and cooperative, the owner's remedy is QBCC early dispute resolution and, if needed, a direction to rectify under section 72 of the QBCC Act.

The cost-plus and construction management exclusion

Cost plus and construction management contracts get no non-completion cover under QHWS. That is a specific policy exclusion by QBCC. TradeForm QLD templates disclose the exclusion explicitly on the face of any cost-plus contract.

Defect cover still applies to cost plus contracts on the terms of the scheme, but the substantial non-completion protection is not available. Owners entering cost plus contracts in Queensland should be aware that if the builder collapses mid-build the owner carries the completion cost risk.

How to lodge a claim

Claims are lodged through the QBCC portal. The claim requires:

• the QHWS notice of cover reference
• proof of the trigger event (bankruptcy order, insolvency notice, disappearance evidence, licence cancellation notice)
• description of non-completion, defect or subsidence
• rectification or completion cost estimate with supporting quotes
• inspection or engineering reports where required

QBCC assigns a claim officer and arranges an assessment. Where the claim is accepted, QBCC either arranges completion or rectification work directly, or reimburses the owner for the cost. Owners have review rights through QCAT.

Claim windows

Non-completion claims must be lodged within a specified window from the trigger event. Defect claims must be lodged within the relevant section 29 warranty period (6 years structural, 1 year non-structural) plus a post-trigger window. Subsidence claims run under a longer scheme window (up to 6 years and 6 months from completion).

The specific timeframes are set by QBCC scheme conditions. Missing a window can bar the claim independently of the merit.

Direction-to-rectify overlap

Where the builder is still solvent and licensed but refuses to rectify, QBCC issues a direction to rectify under section 72 of the QBCC Act 1991 (Qld). Compliance with the direction is a licensing obligation. If the builder subsequently loses the licence for non-compliance, the trigger event for QHWS may open, and the owner can then claim on the scheme.

That overlap is important: the QBCC direction pathway and the QHWS pathway feed each other. A builder that refuses to comply with a direction is on a path toward licence cancellation, which then triggers the insurance layer.

How Queensland compares

Queensland's three-category structure is unique. NSW HBCF: $340,000 overall cap. VIC Home Warranty (from 1 July 2026): $400,000 overall cap, first resort. WA HII: $200,000. SA BII: $250,000. ACT: $200,000. NT Fidelity Fund: $200,000. Tasmania: no scheme.

QBCC's integrated model (regulator, direction issuer, scheme administrator) gives owners a single point of contact but concentrates enforcement risk on QBCC's operational capacity.