What is the Queensland Home Warranty Scheme?
The Queensland Home Warranty Scheme is a statutory insurance scheme administered by the Queensland Building and Construction Commission (QBCC).
Most eligible residential construction work in Queensland valued above $3,300, including labour, materials and Goods and Services Tax, must be insured under the scheme. The licensed contractor generally collects the premium from the homeowner and pays it to QBCC.
The scheme may provide assistance where a licensed contractor does not complete eligible work, does not rectify covered defects or where the work is affected by subsidence or settlement.
Cover generally remains attached to the property for the applicable period. A later buyer may therefore receive the benefit of any cover that remains. The policy details should still be confirmed before that protection is relied upon.
Potential coverWhat may be covered?
Structural defects
Defects affecting the structural integrity, safety or function of eligible building work may be covered. Examples can include problems involving foundations, structural walls, framing, roofs, balconies or significant water entry.
Non structural defects
Some defects affecting finishes or workmanship may be covered for a much shorter period. Examples can include defective tiling, paintwork, joinery or fixtures.
Subsidence or settlement
The scheme may provide assistance where eligible building work is affected by subsidence or settlement.
Non completion
The scheme may assist when a licensed contractor cannot complete work under an eligible contract. Different conditions and timeframes apply to non completion claims.
Limited accommodation and storage costs
An owner occupier may be eligible for limited alternative accommodation, removal and storage costs when an approved claim makes the home uninhabitable. These costs sit within the overall maximum entitlement.
Whether a particular issue is covered depends on the policy, the work, when the issue became apparent and the circumstances of the claim. QBCC assesses each claim against the scheme requirements.
Important limitsWhat buyers should not assume
Known defects
A buyer generally cannot later claim for defects or subsidence they knew about before purchasing the property. This is one reason a building inspection remains important even where active cover exists.
Owner builder work
Work completed under an owner builder permit is not covered by the Queensland Home Warranty Scheme. An owner builder administrative advice generally remains recorded on the title for 7 years.
Higher rise buildings
Building work in or for a multiple dwelling with more than 3 storeys is generally outside the scheme, not counting one storey if it is used mainly for car parking. This can exclude many apartment buildings.
Excluded work
Not every type of residential work is insured. Certain standalone work, external improvements, appliances, landscaping and commercial building work may fall outside the scheme.
Owner changes and normal deterioration
Defects caused by later alterations, misuse, inadequate maintenance or ordinary wear and tear may not be covered.
Contents and financial losses
The scheme is not home and contents insurance. Damage to contents, loss of rent and other financial losses should not be assumed to be covered.
Expired cover or missed deadlines
A policy cannot be renewed once its cover period expires. A claim may also be refused if the defect was discovered or reported outside the applicable time limit.
Swimming pool construction may require its own Queensland Home Warranty Scheme policy when completed under a separate eligible contract by a licensed contractor. The policy position should be checked rather than assumed.
TimeframesTwo different timeframes matter
Buyers need to distinguish between the period during which a defect must become apparent and the deadline for lodging a claim.
| Category | Cover period | Claim deadline |
|---|---|---|
| Structural defects | Generally within 6 years and 6 months from the earliest of the contract date, premium payment date or commencement of work. The cover period may be extended where the work took longer than 6 months to complete. | Generally within 3 months of noticing the defect and within the applicable cover period. |
| Non structural defects | Generally within 6 months after substantial completion. | Generally within 7 months after substantial completion. |
| Non completion | Different time limits apply depending on whether work started and when the contract ended. | Generally within 3 months after the contract ends, subject to the scheme requirements. |
These timeframes are strict and can vary according to when the policy was issued and the circumstances of the claim. Current QBCC guidance should be checked if a defect or non completion issue arises.
How to check the warranty position
For a property built or substantially renovated within the possible cover period, the Queensland Home Warranty Scheme position can be checked as part of due diligence.
What to do if a defect is discovered
Act promptly because strict reporting and claim periods apply.
The usual process may involve:
- Recording when the defect was first noticed
- Photographing and documenting the issue
- Obtaining an independent inspection where appropriate
- Notifying the contractor and allowing a reasonable opportunity to rectify the work
- Lodging the required complaint or claim with QBCC within the applicable timeframe
- Providing the contract, policy information, reports, photographs and correspondence requested by QBCC
The process may differ where the contractor is insolvent, deceased, cannot be located or no longer holds the relevant licence.
QBCC determines whether the work and defect are covered and what assistance may be available. If a homeowner disagrees with a decision, review rights may be available.
Due diligenceUseful protection, not a substitute for checking
The Queensland Home Warranty Scheme can provide useful protection when eligible cover remains. It does not guarantee that every defect will be repaired or every loss recovered.
The policy should be considered alongside the building history, approval records, physical condition, inspection findings and any known defects. The aim is to understand what protection remains and what risk still sits with the buyer.
GlossaryA statutory insurance scheme administered by the Queensland Building and Construction Commission for most eligible residential construction work valued above $3,300. Cover generally remains with the property when it is sold. Maximum entitlements, exclusions and strict claim timeframes apply. Buyers can request a QBCC insurance search to check whether cover and previous claims are recorded for a property.