Queensland Home Warranty Insurance: $3,300 Threshold, $200,000 Limit, 6 Years 6 Months

For residential construction work valued at more than $3,300—including materials, labour and GST—the contractor must take out the policy, collect the premium from the homeowner and pay it to the scheme before work begins, with the premium included in the contract and each quote (Queensland Building and Construction Commission (QBCC) guidance, updated 11 May 2025; figures checked 1 October 2026). The same guidance says home warranty insurance pays up to a maximum of $200,000 on claims. The QBCC’s homeowner guide, updated 24 January 2025 says structural-defect cover generally lasts 6 years and 6 months from the contract date, while non-structural cover typically lasts around 6 months from completion.

Who must arrange and pay the premium?

The Queensland Government administers the scheme through the QBCC. The contractor must take out the insurance on the homeowner’s behalf and pay the premium to the scheme, but the homeowner funds it through the contractor.

Question	QBCC requirement
Who arranges the insurance?	The contractor takes out the policy for the homeowner.
Who provides the premium?	The contractor collects it from the homeowner.
Who pays the scheme?	The contractor pays the collected premium to the scheme.
Where must the cost appear?	It must be included in the contract and each quote for a project valued at more than $3,300.
When is it paid?	Before work begins.

A contractor who fails to meet the insurance obligations may face significant penalties.

Which projects require cover?

The threshold applies to the total residential construction value, including materials, labour and GST. The QBCC identifies new homes, extensions, renovations and repairs as examples of residential work that can require cover.

The scheme does not cover every building or construction project:

Type of work	Queensland Home Warranty Scheme position
Residential construction work valued at more than $3,300, including materials, labour and GST	Cover is compulsory.
Commercial building projects	Not covered.
Work in or on a multiple-unit dwelling with more than three storeys	Not considered insurable residential construction work. A storey that is mainly a carpark is not counted when applying the storey limit.

If the project is close to the threshold or its status is unclear, the QBCC provides a detailed A to Z guide identifying insurable work.

What does the $200,000 limit mean?

The project threshold and claim limit serve different purposes:

Amount	What it represents
More than $3,300 including materials, labour and GST	The threshold above which the relevant residential construction work requires insurance.
Up to a maximum of $200,000	The maximum amount the QBCC says home warranty insurance pays on claims.

The $200,000 figure is not a promise that every claim will be paid to that amount. Claims are subject to limitations and some exclusions. Home warranty insurance is also separate from home and contents insurance.

How long does cover last?

The QBCC gives different general periods for structural and non-structural work:

Type of work or defect	QBCC’s stated general cover period
Structural defects	6 years and 6 months from the contract date
Non-structural work	Around 6 months from completion of the work

The QBCC describes these as general timeframes and notes that specific circumstances may vary. Claim timeframes also depend on the type of claim, so the cover period should not be treated as permission to wait until the end of that period before making a claim. Cover cannot be renewed after it expires.

Which claims are available?

The contract type affects the protection available under the scheme:

Contract type	Cover described by the QBCC
Fixed-price residential contract	Non-completion and defective-work claims
Cost-plus residential contract	Defective-work claims only

A non-completion claim may be available if the contractor does not, or cannot, finish the contracted work. A non-completion claim requires a fixed-price residential contract with a licensed contractor.

A defective-work claim may be made where the contractor does not fix defects. A claim may also be available if the building suffers subsidence or settlement.

The final price under a cost-plus contract is not certain, which prevents the scheme from quantifying the homeowner’s loss in the same way. For that reason, the QBCC does not recommend cost-plus contracts for residential building work.

Does cover stay with the property?

Yes. The policy is attached to the property, so the insurance remains in place for its applicable period if the home is sold. A home buyer or the buyer’s legal agent can search for home warranty insurance attached to the property.

The insurance does not transfer between contractors. Its continued availability therefore depends on the property and the original insured work, not on which contractor later performs work at the home.

What should be checked before work starts?

• Confirm that the total project value includes materials, labour and GST when applying the more-than-$3,300 threshold.
• Check whether the project is residential work and whether the storey exclusion applies.
• Ask for the home warranty insurance premium to be included in every quote so the prices can be compared accurately.
• Check that the contract identifies whether it is fixed-price or cost-plus.
• Confirm when the premium will be paid and which cover periods apply.
• If the status of the work is uncertain, consult the QBCC’s A to Z guide of insurable work.
• Check the current regulator information and the relevant policy’s PDS before relying on a coverage or time limit.

This is general information, not financial or legal advice.

Sources

• What is home warranty insurance | Queensland Building and Construction Commission
• Home warranty insurance: A guide for homeowners | Queensland Building and Construction Commission

FAQ

Who arranges and pays the home warranty insurance premium?

The contractor must arrange the policy and pay the premium to the scheme. The homeowner pays the premium through the contractor, and the cost must be included in the contract and each relevant quote.

Does every building project over $3,300 require home warranty insurance?

No. The threshold applies to residential construction work. Commercial building projects and work in or on multiple-unit dwellings with more than three storeys are not covered.

How long does structural and non-structural cover last?

Structural-defect cover generally lasts 6 years and 6 months from the contract date. Non-structural cover typically lasts around 6 months from completion, although the QBCC says specific circumstances may vary.

Does home warranty insurance continue if the property is sold?

Yes. Cover is attached to the property and remains in place for the applicable period after a sale. It cannot be transferred between contractors.