Does a Queensland Renovation Worth More Than $3,300 Need Home Warranty Insurance?

Figures checked 1 October 2026.

Yes—if a Queensland renovation is residential construction work valued at more than $3,300 including materials, labour and GST, home warranty insurance is compulsory unless the work is outside the scheme. The Queensland Building and Construction Commission (QBCC) guidance updated 11 May 2025 sets that threshold and says the contractor takes out the policy for the homeowner, includes the premium in the contract and quote, and pays it before work begins. The same guidance says the maximum claim payment is $200,000 and cover lasts 6 years and 6 months from the earliest of contract entry, premium payment or commencement of work, subject to limitations and exclusions.

What does the $3,300 threshold include?

The threshold applies to the combined value of the residential project:

A project exactly $3,300 is not above the threshold as currently published. The QBCC also recommends checking that the home warranty insurance premium is included in each quote so the quotes can be compared accurately.

Who takes out and pays for the insurance?

The contractor is responsible for arranging the policy on the homeowner’s behalf.

The QBCC’s stated process is that:

• the contractor takes out home warranty insurance;
• the cost is included in the contract and quote;
• the contractor collects the premium from the homeowner and pays it to the scheme; and
• the premium is paid before work begins.

A contractor who fails to meet these insurance obligations can face significant penalties.

Which residential projects usually need it?

The QBCC’s guide for homeowners, published 24 January 2025, says most residential building work above the threshold requires home warranty insurance. Examples include:

• new homes;
• extensions;
• renovations; and
• repairs.

The price alone does not determine whether the work is insurable. The scheme does not cover every building and construction project. Examples outside the scheme include:

• commercial building projects;
• work in or on multiple-unit dwellings with more than three storeys, excluding a mainly carpark storey;
• work at a registered retirement village or commercial or industrial premises; and
• work on roofed buildings that are not residences, such as farm sheds or horse arenas.

If the project is unclear, consult the QBCC’s detailed A to Z guide of insurable work before signing.

Does the contract type change the claim protection?

Yes. The QBCC describes different protection for fixed-price and cost-plus residential contracts:

A non-completion claim requires a fixed-price residential contract with a licensed contractor. A cost-plus contract has no certain final price, so the QBCC says it cannot quantify whether the homeowner has suffered a loss in the same way for a non-completion claim.

The QBCC does not recommend cost-plus contracts for residential building work because they can limit Home Warranty Scheme protections. Its stated advice is to use fixed-price residential contracts.

What losses can home warranty insurance address?

The policy covers the homeowner for loss if something goes wrong during the building process. Claim circumstances identified by the QBCC include:

• the contractor does not or cannot finish the contracted work;
• the contractor does not fix defects;
• the building suffers subsidence or settlement; and
• an accepted non-completion claim is followed by damage to the building project from fire, storm, vandalism or theft.

The fire, storm, vandalism and theft provision applies only after the non-completion claim has been accepted. It is not a general extension for unrelated damage. Claims also remain subject to limitations and some exclusions.

How long does cover last, and when must a claim be made?

The policy period and the deadline for making a particular claim are different things.

Under the QBCC scheme guidance updated 11 May 2025, cover lasts for 6 years and 6 months from the earliest of:

• entering into the contract;
• paying the premium; or
• commencing the work.

If the residential construction work took more than six months to complete, cover can be extended by 6 months from the cover commencement day.

The QBCC’s homeowner guide describes structural-defect cover as generally lasting 6 years and 6 months from the contract date. For non-structural work, it is typically around 6 months from completion. These are general timeframes, and specific circumstances may vary.

Claims must be made within the timeframes that apply to the type of claim. Cover cannot be renewed after it expires.

Is this the same as home-and-contents insurance?

No. The QBCC expressly states that home warranty insurance is not home and contents insurance. It is a safety net for specified losses and problems arising during residential construction work, rather than a substitute for a home-and-contents policy. Check the separate home-and-contents PDS for the terms of that policy.

What should I check before signing the renovation contract?

• Check that the quote identifies the combined project value, including materials, labour and GST.
• Check that the home warranty insurance premium is included in the quote and contract.
• Confirm whether the agreement is fixed-price or cost-plus. A non-completion claim requires a fixed-price residential contract with a licensed contractor.
• Read the PDS for the claim timeframes, limitations and exclusions.
• Do not pay more than the law or contract allows, because overpayment can affect the insurance.
• Remember that the cover cannot be transferred between contractors.

This is general information, not financial or legal advice. Check the QBCC regulator page and the applicable policy PDS before entering into the contract.

Sources

• Queensland Building and Construction Commission: What is home warranty insurance — updated 11 May 2025.
• Queensland Building and Construction Commission: Home warranty insurance: A guide for homeowners — published 24 January 2025.

FAQ

Does a Queensland renovation exactly $3,300 need home warranty insurance?

The published compulsory threshold is residential construction work valued at more than $3,300, including materials, labour and GST. A project exactly $3,300 is not above that threshold, but the work must still fall within the scheme rather than one of its excluded categories.

Who arranges and pays for home warranty insurance?

The contractor takes out the policy on the homeowner’s behalf, includes its cost in the contract and quote, collects the premium from the homeowner, and pays it to the scheme before work begins.

Why does the contract type matter?

Fixed-price residential contracts can support non-completion and defective-work claims. Cost-plus contracts are covered only for defective-work claims, and a non-completion claim requires a fixed-price contract with a licensed contractor.

Does home warranty insurance replace home-and-contents insurance?

No. The QBCC expressly says home warranty insurance is not home and contents insurance. It addresses specified construction-related losses rather than replacing a home-and-contents policy.

How long do I have to make a claim?

The deadline depends on the type of claim. The policy’s stated cover period is not a blanket reporting deadline for every claim, so check the current policy PDS and the QBCC information before making a claim.