Once you have signed a contract with a contractor for residential construction work valued over $3,300, the licensed contractor should pay the appropriate insurance premium to BSA.
What work is insurable?
Some of the types of work that you may have carried out that will require the payment of an insurance premium include:
The construction of a house, duplex, townhouse, villa unit, any residential unit (provided it is not a multiple storey dwelling of more than three storeys) and residential outbuildings (e.g. garage, pool change room, gazebo, shed etc)
Replacement of, or extension to, part or all of a residential building (including re-fitting bathrooms and kitchens) that affects any of the structural components (e.g. walls, roof, floor, foundations).
How much insurance cover is available under a policy?
The maximum benefit available under a policy is the lower of either the replacement value of the insured work or:-
- $200,000 - Prior to Practical Completion (covers Non-Completion, Defects and Subsidence or Settlement)
- $200,000 - After Practical Completion (covers Defects and Subsidence or Settlement)
That amount includes, where applicable, a maximum of $5,000 for alternative accommodation, removal and storage costs.
Will BSA Investigate When Home Warranty Insurance has not been Paid?
Yes - click here for more
Publications
Facts for Smart Building and Renovating
Insurance Premium Table - From 1 July 2011
Insurance Premium Table - From 1 July 2010 - 30/06/2011
Insurance Premium Table (For contracts signed prior to 1 July 2010)
