How to Claim on Home Indemnity Insurance in Western Australia

What it is

Home Indemnity Insurance (HII) is Western Australia's compulsory home warranty insurance scheme under Part 3A of the Home Building Contracts Act 1991 (WA) and the Home Building Contracts Regulations 1992 (WA). Every residential building work contract over $20,000 requiring a building permit must carry HII cover, taken out by the builder in the owner's name.

QBE is the sole operative private insurer as at November 2025. Cover responds to non-completion and defects up to $200,000 and deposit loss up to $40,000, with a 6 year claims window running from practical completion.

Trigger events (broader than most states)

HII cover triggers under section 25C of the HBCA and the Regulations are:

• the builder has died
• the builder has disappeared and cannot be found
• the builder is insolvent (bankruptcy or company insolvency)
• the builder's registration has been cancelled OR not renewed on financial grounds

That last trigger is important. WA is the only Australian jurisdiction where a builder losing registration on financial grounds (as distinct from insolvency proceedings) opens the insurance claim. That gives owners a broader trigger set than NSW HBCF (which requires cancellation or suspension on specific licensing grounds) or QLD QHWS (which requires licence cancellation).

Cover structure

• non-completion and defects: up to $200,000 total
• deposit loss: up to $40,000 (before work starts)

The $200,000 is a single pool for non-completion and defects combined. There is no separate structural or subsidence sub-limit.

Cover applies to defects notified within 6 years of practical completion. That aligns with the 6 year BSCRA workmanship complaint window but is separate from the 4 month section 11 HBCA make-good obligation which is a private contract remedy.

The builder's certificate obligation

Section 25C of the HBCA requires the builder to take out the insurance and give the owner the certificate before demanding or receiving any payment (including the deposit) or before starting work. Missing the certificate is an offence and gives the owner strong grounds to terminate under section 19.

TradeForm WA templates require the certificate to be attached to the contract at signing. Section 25F extends the certificate obligation to owner-builders selling within 7 years of practical completion.

How to lodge a claim

Claims are lodged with the operative insurer (currently QBE). The claim requires:

• the HII policy or certificate number
• proof of the trigger event (bankruptcy order, insolvency notice, disappearance evidence, notice of registration cancellation on financial grounds)
• description of non-completion, defect or deposit loss
• rectification or completion cost estimate with supporting quotes
• inspection or engineering reports where required

The insurer assigns a claims officer and arranges an assessment. Where the claim is accepted, the insurer either arranges completion or rectification directly, or reimburses the owner for the cost.

Notification window

Claims must be notified to the insurer within the policy period, which is 6 years from practical completion. There is no additional short window after the trigger event comparable to the Victorian legacy DBI 180 day rule.

That gives WA owners more flexibility on claim timing than owners in states with post-trigger notification cutoffs. An owner who discovers a builder insolvency 5 years after completion still has time to lodge inside the 6 year policy period, provided the defect itself falls within the covered categories.

The 2026 review

The 2026 review of Western Australia's home building contract laws, with consultation closed 24 June 2026 and recommendations due September 2026, expressly excludes insurance settings from its scope. HII arrangements will not change through the current review process. Any changes would need separate legislative action.

How WA compares

WA at $200,000 for non-completion and defects sits at the lower end of Australian scheme caps. NSW HBCF: $340,000. VIC Home Warranty from 1 July 2026: $400,000 first resort. SA BII from 10 November 2025: $250,000. QLD QHWS: $200,000 per category (three categories). ACT: $200,000 from 1 January 2025. NT Fidelity Fund: up to $200,000. Tasmania: no scheme.

Where WA differs is on trigger breadth. The registration-cancelled-on-financial-grounds trigger opens the scheme earlier than NSW, QLD or SA, giving owners a wider protection window against a builder whose finances have deteriorated even before formal insolvency.