Home Building Compensation Fund — explained.
The HBCF is the NSW Government's statutory insurance scheme that provides a safety net for homeowners when a licensed builder can no longer be pursued for defective or incomplete residential building work.
What is the HBCF?
The Home Building Compensation Fund (formerly the Home Warranty Insurance Scheme) is a mandatory insurance scheme in NSW. All licensed builders undertaking residential construction work over $20,000 must take out HBCF cover before beginning.
The scheme provides a financial safety net for homeowners when their builder or contractor has become insolvent, died, disappeared, or had their licence suspended for failing to comply with an NCAT or court money order made in the homeowner's favour.
Once a trigger event has occurred, claims can cover the cost of rectifying defects, completing unfinished work, or losses arising from those failures, within the policy limits.
When can you make a claim?
Warranty periods
Act promptly. These warranty periods are strict. Once the window closes, you may lose your entitlement to claim. If you suspect a defect, contact us immediately for a free assessment.
Common major defects include
- ✓ Balcony waterproofing detailing not built in accordance with the NCC
- ✓ Masonry defects, including cracking, missing articulation joints and inadequate damp-proofing
- ✓ Structural cracking, subsidence or foundation failure
- ✓ Water ingress, roof leaks, or waterproofing failure
- ✓ Mould growth resulting from construction defects
- ✓ Defective fire safety systems or separations
- ✓ Defective plumbing or electrical work
Your rights under the Home Building Act 1989 (NSW)
Your protection begins with the law. Section 18B of the Home Building Act 1989 (NSW) implies statutory warranties into every contract to do residential building work. These include "a warranty that the work will be done with due care and skill and in accordance with the plans and specifications set out in the contract" (s 18B(1)(a)), and "a warranty that the work will be done in accordance with, and will comply with, this or any other law" (s 18B(1)(c)). These warranties cannot be contracted out and extend to subsequent owners of the property.
The time you have to act is set by section 18E, which provides that "the warranty period is 6 years for a breach that results in a major defect in residential building work or 2 years in any other case", running from completion of the work. At Turner & Wright, we build every claim on this legal foundation, and on strict compliance with the National Construction Code (NCC) and the relevant Australian Standards.
Find out if you have a claim
Not sure whether you are eligible? Speak to Turner & Wright. We will review your situation and tell you whether a claim is available to you. You pay nothing upfront, and if there is no payout, you pay nothing.