Yes. Under Western Australia’s Home Building Contracts Act 1991, residential building work valued over $20,000 requires the builder to take out home indemnity insurance (HII) in the owner’s name before accepting payment or commencing work, according to the WA Government’s Home indemnity insurance fact sheet, dated 25 September 2025. For the proposed work, the builder must obtain the HII certificate before claiming payment or starting contract work and provide copies to the owner and permit authority, as set out in the WA Government’s 20 May 2025 reminder. Figures checked 1 October 2026.
What does HII protect the owner from?
HII protects the owner against the risk of losing a deposit or bearing other financial loss if the builder cannot complete the work or meet a valid claim for faulty or unsatisfactory building work because of a relevant circumstance concerning the builder.
Relevant circumstances can include:
- An individual builder dying, disappearing or becoming insolvent.
- A non-individual builder, such as a corporation, ceasing to exist or becoming insolvent.
- The State Administrative Tribunal cancelling the builder’s registration, or the Building Services Board declining to renew it, because the builder failed to satisfy the financial requirements prescribed under regulations made under the Building Services (Registration) Act 1991 (WA).
What must happen before signing, payment and work?
The WA Government material sets the following requirements:
| Stage | Builder’s requirement |
|---|---|
| Before a home building contract is signed or a deposit is paid | Give the owner a copy of the Notice for the homeowner, Schedule 1 of the Home Building Contracts Regulations 1992. It summarises the main requirements of the Home Building Contracts Act 1991, including the requirement for HII. |
| Before claiming or accepting payment or commencing contract work for residential building work valued over $20,000 | Obtain an HII certificate for the proposed work, with the insurance taken out in the owner’s name. |
| During the building approval process | Provide a copy of the HII certificate to the permit authority and give a copy to the owner. |
The certificate therefore needs to exist before the first payment claim or commencement of work, rather than being arranged after the builder has started.
What does the permit authority check?
Before granting a building permit for residential building work valued over $20,000, the permit authority must ensure that:
| Check | What must be confirmed |
|---|---|
| Submission | The builder submitted an HII certificate for the proposed work. |
| Watermark | The certificate is watermarked. |
| Issuer | The certificate was issued by QBE. |
| Register details | Its details match QBE’s records in the Builders Warranty Insurance Certificate Register. |
| Correct document | The builder has not supplied an HII eligibility certificate or construction/public liability insurance certificate instead of the HII certificate. |
A construction/public liability policy may be relevant to other parts of the project, but it does not replace the required HII certificate.
How can the owner check the certificate?
The builder must give the owner a copy of the HII certificate. The owner can then use QBE Insurance’s published Builders Warranty Insurance Certificate Register to confirm that the certificate was issued by QBE and compare its details with QBE’s records.
Building and Energy can also advise which HII providers are approved.
What if the builder changes before completion?
If the builder changes during construction and before the works are complete, the proposed new builder must obtain an HII certificate for the proposed building work or the required stage of work and provide a copy to the owner.
Providing a copy to the permit authority is also advisable. Owners are encouraged to confirm that the new builder has HII in place and has given them the certificate.
What about exemptions or separate associated work?
Two situations are identified in the WA Government material:
- If a builder claims an exemption under the Home Building Contracts (Home Indemnity Insurance Exemptions) Regulations 2002 and there is uncertainty, check with Building and Energy before proceeding.
- HII is not required for associated work performed alone under separate contracts, such as installing a swimming pool, carport or pergola, or carrying out landscaping.
What should readers check before acting?
This is general information, not financial or legal advice. Check the current WA Government regulator information for the latest requirements, and read the policy’s Product Disclosure Statement for its terms and conditions.
Sources
- Home indemnity insurance fact sheet — WA Government, 25 September 2025.
- Home indemnity insurance – a reminder about your obligations — WA Government, 20 May 2025.
FAQ
Must HII be in the owner’s name?
Yes. For residential building work valued over $20,000, the builder must take out HII in the owner’s name before accepting payment or commencing work.
Can an HII eligibility certificate or public liability certificate replace the HII certificate?
No. The permit authority must be given the HII certificate for the proposed work. An HII eligibility certificate or construction/public liability insurance certificate cannot be supplied instead.
Who can help if a project may be exempt?
Building and Energy can check where there is uncertainty about an exemption and can advise of approved HII providers. The WA Government’s 20 May 2025 reminder lists 1300 489 099 and bcinfo@demirs.wa.gov.au.
What happens if a builder does not obtain required HII?
Builders who fail to obtain HII when required risk substantial penalties and disciplinary proceedings.
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