Yes—under the WA Government’s guidance, updated 20 May 2025, a WA owner-builder must obtain home indemnity insurance (HII) if they intend to sell their property within seven years from the time the building permit was granted. The HII certificate must be provided to the prospective purchaser before settlement. Figures checked 1 October 2026.
What does the seven-year rule actually require?
The WA position can be reduced to three clear requirements:
| Trigger | Requirement |
|---|---|
| The building permit is granted | This is the point from which the seven-year period is measured. |
| The owner-builder intends to sell within that period | The owner-builder must obtain HII. |
| The property is sold | The prospective purchaser must receive the HII certificate before settlement. |
The obligation is therefore conditional on the intended sale within the seven-year period. It is not limited to obtaining a certificate after a sale contract has already been signed.
How does this relate to the $20,000 HII threshold?
The same guidance separately states that residential building work valued over more than $20,000 must be covered by HII. That project-value requirement and the owner-builder’s seven-year sale requirement are separate checks; neither should be treated as a substitute for the other.
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. If a builder claims an HII exemption and the project’s status is unclear, check with Building and Energy.
What does HII protect against?
HII protects owners against the risk of losing their deposit or suffering 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.
A relevant circumstance can include:
- an individual builder dying, disappearing or becoming insolvent;
- a non-individual builder, such as a corporation, ceasing to exist or becoming insolvent; or
- the State Administrative Tribunal cancelling a builder’s registration, or the Building Services Board not renewing it, because the builder failed to meet the prescribed financial requirements.
Which HII certificate should be provided?
For residential building work valued over $20,000, the builder must obtain the HII certificate for the proposed work before claiming payment from the owner or commencing work under the contract. A copy must be provided to the owner and the permit authority as part of the building approval process.
For the owner-builder sale, the HII certificate must also reach the prospective purchaser before settlement.
The documents and checks matter:
- Correct document: The permit authority must be satisfied that the document is an HII Certificate of Insurance, not an HII eligibility certificate or a construction/public liability insurance certificate.
- Watermark: The certificate supplied to the permit authority must be watermarked.
- Issuer and records: Under the cited guidance, the permit authority must ensure the certificate was issued by QBE and that its details match QBE’s Builders Warranty Insurance Certificate Register.
- Independent record check: QBE Insurance’s register can be used to confirm that a builder-provided certificate was issued by QBE and to match its details against QBE’s records.
What should I do if the position is unclear?
Check the WA Government regulator page for the current requirements, particularly if an exemption may apply or the certificate details do not match. Also read the policy’s Product Disclosure Statement (PDS) before relying on the insurance.
This is general information, not financial or legal advice.
Sources
FAQ
When does the seven-year period start?
The guidance measures it from the time the building permit was granted.
Does the owner-builder have to sell within seven years?
The stated obligation is triggered if the owner-builder intends to sell within seven years of the building permit being granted.
When must the prospective purchaser receive the certificate?
The HII certificate must be provided to the prospective purchaser before settlement occurs.
Can an eligibility certificate or public liability certificate replace the HII certificate?
No. For the permit process, the permit authority must be satisfied that the builder supplied the actual HII Certificate of Insurance, rather than an HII eligibility certificate or a construction/public liability insurance certificate.
How can the certificate details be checked?
Use QBE Insurance’s Builders Warranty Insurance Certificate Register to confirm that the certificate was issued by QBE and compare its details with QBE’s records.
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