What is Home Warranty Insurance?
Home Warranty Insurance is obtained by the builder and issued to the homeowner. It is legally required whenever a builder or tradesman performs work where the contract price is more than $20,000. Home Warranty Insurance protects you, the homeowner, in the event that a builder is unable or unwilling to complete the contracted work. It also covers you for the repair of any faulty work that has been performed if the builder fails to rectify the defect.
Home Warranty Insurance is not an optional extra if the contract price is over $20,000 but is an optional extra if the contract price is under this amount. An application for Home Warranty Insurance is made before you renovation starts.
What does it cover?
Home Warranty Insurance covers all losses arising from non-completion of work. This cover will be provided in the event of the death, disappearance or insolvency of the builder. Home Warranty Insurance also covers loss arising from defective or faulty work, and more recently, cover is also provided when a builder's contractor licence is suspended.
How long does Home Warranty Insurance last?
Home Warranty Insurance provides cover to the homeowner for up to two years in the case of non structural renovations and up to six years in the case of structural renovations. You can make a claim at any time during this period.
How do I obtain Home Warranty Insurance?
It is the responsibility of the builder to obtain Home Warranty Insurance. Hollywood will lodge an application prior to commencing work on your property. You do not need to apply for Home Warranty Insurance; we will take care of it for you.
Does Hollywood Bathrooms and Kitchens provide Home Warranty Insurance?
Yes, we provide Home Warranty Insurance on every job we do when the contract is over $20,000. In addition to this, we also provide a 10-year guarantee on workmanship (conditions apply). So you can be confident in our work, relax and enjoy your new kitchen or bathroom!
Where can I get more information?
To find out more about Home Warranty Insurance, visit the NSW Fair Trading website.