Most people building a new home in Queensland pay for home warranty insurance without ever noticing. The premium is built into the contract price, and the builder pays it to the QBCC. Then it sits quietly in the background until something goes wrong.
That's when people find out what it covers, and more importantly, the deadlines they've already missed. Here's how home warranty insurance in Queensland works, what it pays for, what it doesn't, and the simple habits that keep your cover intact.
C17 - Handover Stage Checklist
$119.00 AUD
Last updated 28 Oct 2026 · Revision 5 · Free updates for life
Checklist Type: Major (Handover Stage)
Form Factor: Fillable, print-ready PDF (A4, 30 pages)
When to use: Handover: final payment, keys and taking possession of your home
A 111-point handover checklist for the day you take the keys. Cover the final claim, certificates, keys and codes, warranties and how to report defects on time.
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Home warranty insurance in Queensland: the basics
In Queensland, home warranty insurance is provided by the QBCC itself, under the Queensland Home Warranty Scheme. It isn't a private policy you shop around for.
- When it applies. Residential building work by a licensed contractor costing more than $3,300, including materials, labour and GST.
- Who pays. You do, through your contract price. The builder collects the premium from you and must pay it to the QBCC within 10 business days of entering the contract.
- What you should get. Proof of cover from the QBCC after the premium is paid. Ask for it if it doesn't arrive.
Other states: NSW, Victoria and most other states use a private "last resort" scheme that generally only pays if the builder has died, disappeared or become insolvent. Queensland's scheme is broader, so don't assume interstate advice applies.
What it covers
The QBCC scheme covers three main things:
- Non-completion. The builder doesn't finish the work, for example because they've gone broke and the contract has properly ended.
- Structural defects. Defects that affect the structural integrity of the home.
- Non-structural defects. Things like minor finishes and other defects that aren't structural.
Before completion, the QBCC also lists limited cover for things such as theft, vandalism, fire and storm damage, linked to an approved non-completion claim.
How long the cover lasts
This is where people get caught. The periods differ for each type of claim:
| Claim type | Cover period | Lodge your claim |
|---|---|---|
| Non-completion | Contract ends before the work is finished | Within 3 months of the contract ending |
| Structural defects | 6 years and 6 months from the earliest of the contract date, premium payment or start of work (extended if the build takes more than 6 months) | Within 3 months of noticing the defect |
| Non-structural defects | 6 months from completion | Within 7 months of completion |
The non-structural window is short. Six months after handover, a cracked tile or a sticking door is no longer covered by the scheme, even though your builder may still have obligations under the contract.
How much it pays
The QBCC sets maximum entitlements:
- Standard cover: up to $200,000, which includes up to $5,000 for accommodation and storage.
- Optional additional cover: up to $300,000, including up to $10,000 for accommodation and storage, if you choose to buy it.
On a bigger build, $200,000 may not be enough to finish the house if your builder fails late in the job. Ask about the optional cover before you sign.
What Queensland home warranty insurance won't do
The scheme has firm limits. It won't:
- Refund a deposit above the legal limit. For contracts over $20,000, the deposit can't be more than 5%, except in limited off-site cases. Any excess isn't recoverable under the scheme.
- Cover money paid ahead of the work or outside the contract terms. The QBCC has warned that early or extra payments can reduce your protection.
- Cover owner-builder work. That includes work by licensed trades engaged under an owner-builder permit.
- Stretch past its deadlines. Miss the lodgement window and you can lose the claim.
- Pay beyond the cap.
My rule: pay only what the contract says, only when the stage is genuinely finished.
The defects period is not the insurance period
Two timeframes get mixed up all the time.
- Your builder's defects obligation. Under Queensland's standard new home contracts, the builder must fix defects that become apparent within 12 months of practical completion, once you notify them in writing.
- The insurance window for non-structural defects. Only 6 months of cover, and 7 months to lodge.
So if your builder is slow to fix non-structural items, you can't wait until month 11 to escalate. If the work isn't done after your written requests, lodge with the QBCC before the 7-month cut-off.
How to protect your cover
In 26 years in residential construction, most lost claims I've seen came down to paperwork and timing, not the defect itself. Keep it simple:
- Get proof of cover after you pay the deposit, and file it.
- Never pay more than the legal deposit, and never pay a stage before it's complete.
- Inspect carefully at handover and get the defects document in writing. Our C17 Handover checklist lists the documents and checks for this stage. It's on the Checklists page, and the C17 Handover post walks through it.
- Report defects in writing as soon as you see them, with dated photos.
- Diary the deadlines. Six months, seven months and twelve months from completion.
- Keep records of drainage and site changes. They matter if slab movement shows up later. More in Site drainage and slab movement.
If your builder goes broke
- Get advice before you end the contract. Ending it the wrong way can put you in breach and damage your claim.
- Stop payments and secure the site. Photograph everything: work done, materials on site and every payment made.
- Lodge your non-completion claim with the QBCC within 3 months of the contract ending.
- Talk to your lender early. A replacement builder will need to be approved.
The rules and deadlines are set by law, and every situation is different, so check your own contract and get legal advice before acting on a claim.
The short version
Home warranty insurance in Queensland is run by the QBCC and paid through your contract price on work over $3,300. It covers non-completion and structural and non-structural defects, up to $200,000 as standard. Non-structural cover lasts only 6 months, with 7 months to lodge, and the scheme won't refund an illegal deposit or money paid ahead of the work.
Know your deadlines, keep your paperwork, and report defects early.
FAQs
Does home warranty insurance in Queensland transfer if I sell?
Yes. The QBCC says the policy is attached to the property, so a buyer can claim for the rest of the cover period. Owner-builder work has no cover to pass on.
Is home warranty insurance included in my contract price?
It should be, for work over $3,300. The builder collects the premium from you and pays it to the QBCC.
What's the difference between the 12-month defects period and home warranty cover?
The 12-month period is your builder's obligation under the contract. Home warranty cover for non-structural defects lasts 6 months, with 7 months to lodge a claim.
Can I buy more cover?
Yes. Optional additional cover lifts the maximum to $300,000. Ask your builder about it before you sign.
