According to Service NSW (updated 9 September 2024), a licensed builder or tradesperson must hold home building compensation (HBC) cover of at least $340,000 for a NSW residential home or renovation contracted with a homeowner, owner-builder or developer where the contract price or market cost of labour and materials is over $20,000 including GST and the project is not exempt. Use HBC Assist to determine whether the job needs cover, then use the free public HBC Check register to confirm that the specific job has cover; the NSW Government (updated 6 July 2026) also advises checking valid insurance before paying money or starting work over $20,000.
Figures checked 1 October 2026.
When does a renovation need HBC cover?
Use HBC Assist to assess the particular job. The Service NSW requirements combine several conditions:
| Check | Requirement |
|---|---|
| Type of work | A residential home or renovation project |
| Contracting party | The work is contracted with a homeowner, owner-builder or developer |
| Project value | The contract price or market cost of labour and materials is over $20,000, including GST |
| Cover required | At least $340,000 in HBC cover |
| Timing | Cover must be held before work starts or any money, including a deposit, is taken |
| Exemption | The project must not be exempt from HBC insurance |
Renovations of residential buildings of any height are among the projects that typically require HBC cover, subject to these conditions.
There is also a subcontracting exception. Service NSW says HBC cover is not needed when the work is subcontracted from another licensed contractor. This is why checking the actual job with HBC Assist is more useful than assuming every project described as a renovation is treated the same way.
What do HBC Assist and HBC Check each tell you?
They answer different questions:
| Check | What it establishes | When to use it |
|---|---|---|
| HBC Assist | Whether the job needs HBC cover | Before relying on the project value, exemption or subcontracting exception |
| HBC Check | Whether the specific job is listed as having valid HBC cover | Before paying a deposit or starting work |
| Certificate of insurance | Provides the certificate required for a qualifying job | Service NSW says the contractor must provide it before taking a deposit or starting work |
Anyone can use the free public HBC Check register to confirm that a builder or tradesperson has valid cover for the residential work being done in NSW.
What should a homeowner check before paying a deposit?
Use this sequence:
- Identify the job and its value. Establish the contract price or the market cost of labour and materials, including GST.
- Run HBC Assist. Confirm whether that job needs HBC cover.
- Ask for the certificate of insurance. If the job is covered, the contractor must provide the certificate before taking a deposit or starting work.
- Ask for details that identify the registered job. Use those details to locate the same project in the free public HBC Check register.
- Compare the result with the certificate and contract. Check that the certificate and public-register result relate to the same job and contractor, rather than an earlier or different project.
- Resolve any mismatch before transferring money. If there is a delay between the deposit and commencement of work, check again that the job remains listed with valid cover before work starts.
A verbal assurance that insurance “is being arranged” is not the same as holding the required cover before the deposit or work begins.
What should I do if the job is not listed in HBC Check?
A missing or mismatched result should not be treated as confirmation. Pause the deposit and work while the contractor resolves it.
If the job requires cover but no listing appears, ask the contractor to provide the certificate and confirm the details used for the job registration. Service NSW says a contractor applies through an insurance broker distributor from icare HBCF’s list, obtains a certificate of eligibility through that distributor and submits the application through them.
If the contractor says the job is exempt or is being subcontracted, ask for an explanation of the contracting and licensing arrangement. Service NSW specifically says no HBC cover is needed where work is subcontracted from another licensed contractor.
Service NSW also states that failing to take out HBC cover for each qualifying job and provide the certificate before a deposit or work starts is an offence under NSW law.
Who regulates and supplies HBC cover?
The State Insurance Regulatory Authority (SIRA) regulates the HBC scheme. Service NSW identifies icare HBCF as the only insurance provider offering HBC cover.
A certificate or register result should be checked against the current job, but it does not replace the need to review the contract and obtain advice on an unresolved issue.
Is this legal or financial advice?
No. This is general information, not financial or legal advice. Check the current regulator page for the latest requirements and the product disclosure statement for any relevant policy. Because eligibility and exceptions depend on the job’s circumstances, unresolved matters should be referred to the regulator or an appropriately qualified adviser.
Sources
- Apply for home building compensation cover | Service NSW
- Insurance cover for building work | NSW Government
FAQ
What is the difference between HBC Assist and HBC Check?
HBC Assist determines whether the job needs HBC cover. HBC Check is the free public register used to confirm that the specific job has cover.
Does HBC cover apply at exactly $20,000?
The published threshold is a contract price or market cost of labour and materials over $20,000, including GST, subject to the other requirements.
Should I pay a deposit if the certificate has not arrived?
No. Service NSW says the certificate must be provided before the contractor takes a deposit or starts work on a qualifying job. Resolve the certificate and coverage status first.
What if HBC Check shows no matching job?
Do not treat the absence of a matching result as confirmation. Ask the contractor to reconcile the contract, certificate and registered-job details, and resolve the discrepancy before paying or starting work.
What does HBC cover protect against?
HBC cover can help homeowners as a last resort when a builder cannot complete building work or fix defects because of insolvency, licence suspension, death or disappearance, or cannot honour warranty obligations.
Partner links. Using them costs you nothing extra and may earn us a commission.