What does Queensland home warranty insurance actually cover?
Researched by the LokalMatch editorial team1 answer
There is a premium line in my contract and nobody has explained what it buys me.
Answers (1)
LokalMatch EditorialLokalMatch editorial
Three things: work the contractor never finishes, defective work they do not come back and fix, and subsidence or settlement affecting the building. The Queensland Home Warranty Scheme is compulsory for residential construction work valued at more than 3,300 dollars, including materials, labour and GST.
The premium is collected from you by the contractor and paid to the Commission on your behalf, which is why it appears as a line in your contract rather than as a bill from an insurer.
That structure has an obvious failure mode. A contractor who collects the premium and never remits it leaves you paying for cover that does not exist, and you will only discover it at the moment you need to claim.
So confirm the policy directly with QBCC once the contract is signed, using your own address. It takes a phone call, and it is the only way to know that the line item in your contract became an actual policy.
Answers come from pros and are reviewed by LokalMatch before they’re published. They’re general information — for regulated or safety-critical work, have a licensed professional assess your situation.
Sources
Where the facts on this page come from.
What is home warranty insurance — Queensland Building and Construction Commission (accessed 24 September 2026)