WA HII: $20,000 Threshold, $40,000 Deposit Limit and $200,000 Works Limit

Figures checked 1 October 2026: the WA Government’s 8 April 2025 reform statement says home indemnity insurance (HII) is compulsory for residential building projects valued at $20,000 or more, while its 20 May 2025 obligations reminder refers to residential building work over $20,000. For work over $20,000, a builder must obtain an HII certificate for the proposed work before claiming or accepting payment and before commencing contract work; for a project valued at exactly $20,000, check the current regulator page because the official wording differs. The 8 April 2025 statement says eligible homeowners may be entitled to up to $40,000 for lost deposits and up to $200,000 for incomplete or defective work if the builder dies, disappears or becomes insolvent.

When does the $20,000 threshold apply?

The WA Government’s dated materials frame the threshold as follows:

Project value	What the official material says
Over $20,000	The 20 May 2025 obligations reminder says HII is required.
$20,000 or more	The 8 April 2025 reform statement describes HII as compulsory.
Exactly $20,000	The official pages use different boundary wording, so check the current regulator guidance before proceeding.

For residential building work over $20,000, the builder must:

1. Obtain an HII certificate for the proposed work before claiming or accepting payment and before commencing contract work.
2. Provide a copy of the certificate to the owner.
3. Provide a copy to the permit authority as part of the building approval process.

The reform statement says the insurance must be taken out in the owner’s name. Before granting the building permit, the permit authority must ensure that the certificate was submitted, is watermarked, was issued by QBE and matches QBE’s records. Builders who do not obtain required HII risk substantial penalties and disciplinary proceedings.

A separate document is required before the home building contract is signed or a deposit is paid: the builder must give the owner the “Notice for homeowner”, Schedule 1 of the Home Building Contracts Regulations 1992. It summarises the main requirements of the Home Building Contracts Act 1991, including the HII requirement, but it is not the HII certificate.

What do the $40,000 and $200,000 amounts cover?

HII protects owners against the loss of a deposit or other financial loss if the builder cannot complete the work or meet a valid claim for faulty or unsatisfactory building work because of a relevant circumstance concerning the builder.

The WA Government’s 8 April 2025 reform statement lists different maximum amounts for two categories of loss:

Type of loss	Maximum listed on 8 April 2025	Event specified in that statement
Lost deposits	Up to $40,000	The builder dies, disappears or becomes insolvent.
Incomplete or defective work	Up to $200,000	The builder dies, disappears or becomes insolvent.

These are maximum amounts for eligible homeowners, not automatic payouts. When the statement was issued on 8 April 2025, the approved scheme changes were described as taking effect “as soon as possible”; the statement did not specify a commencement date.

The broader 20 May 2025 obligations reminder also describes other relevant circumstances. These can include an individual builder dying, disappearing or becoming insolvent; a non-individual builder, such as a corporation, ceasing to exist or becoming insolvent; or registration cancellation or non-renewal because the builder failed to meet prescribed financial requirements under the Building Services (Registration) Act 1991 (WA). A claim must still be assessed against its circumstances and the policy terms.

The WA Government’s 8 April 2025 statement says that, in most cases, the policy must cover the construction period and six years from the practical completion date.

How do I check the certificate in QBE’s register?

The WA Government says the permit authority must check the certificate before granting the permit. A reader or owner can use the same core checks:

1. Obtain the actual HII Certificate of Insurance. An HII eligibility certificate or a construction/public liability insurance certificate is not a substitute.
2. Check the issuer and watermark. The certificate must have been issued by QBE and be watermarked. Approved providers began watermarking HII certificates in 2016.
3. Use QBE Insurance’s Builders Warranty Insurance Certificate Register. The register can confirm that the certificate was issued by QBE and allow its details to be matched against QBE’s records.
4. Resolve any mismatch. If the certificate is missing or its details do not match, ask the builder and permit authority to resolve the discrepancy. Building and Energy can also advise of approved HII providers.

A watermark and a register match are separate checks. The register confirms issuance and matching details; it does not determine whether a particular claim or amount is payable.

This is general information, not financial or legal advice. Check the current WA Government regulator page and the policy’s product disclosure statement (PDS) for the applicable cover and claim terms.

FAQ

Is HII compulsory for a project valued at exactly $20,000?

The dated official pages use different formulations: the 8 April 2025 statement says $20,000 or more, while the 20 May 2025 reminder says over $20,000. For work above $20,000, HII is required. If the contract value is exactly $20,000, check the current regulator guidance before relying on either wording.

Does a QBE register match guarantee the $40,000 or $200,000?

No. The register confirms that QBE issued the certificate and that its details match QBE’s records. Payment depends on eligibility, the relevant circumstances, a valid claim and the policy terms. The $40,000 and $200,000 figures are upper limits, not guaranteed amounts.

What if the builder changes before construction is completed?

The proposed new builder must obtain an HII certificate for the proposed work or the required stage and provide a copy to the owner. The new builder should also provide a copy to the permit authority.

What if an owner-builder sells the property within seven years?

An owner-builder must obtain HII if they wish to sell within seven years from the time the building permit was granted. The HII certificate must be provided to the prospective purchaser before settlement occurs.

What if the builder claims an HII exemption?

If there is uncertainty under the Home Building Contracts (Home Indemnity Insurance Exemptions) Regulations 2002, check with Building and Energy before proceeding without the required certificate.

Sources

• Home indemnity insurance – a reminder about your obligations
• Commerce Minister media statement – Insurance reforms to better protect home owners