What your policy covers

What your policy covers 2018-06-11T22:05:39+11:00

WHAT PROTECTION DOES MY HBC CONTRACT PROVIDE?

The level of protection provided by your HBC contract(s) is set out within the contract documents we forwarded to you at the time your building contractor took out cover on your behalf.

In summary, HBC contracts provide protection for either:

  • The ‘construction period’;
  • The ‘warranty period’; or
  • A combined construction and warranty period contract.

They provide protection to homeowner against losses in the following circumstances:

  1. Where a person on whose behalf the work is being done against the risk of loss resulting from non-completion of the work because of the insolvency, death or disappearance of the contractor, and (Construction period);
  2. Where a person on whose behalf the work is being done and the person’s successors in title against the risk of being unable, because of the insolvency, death or disappearance of the contractor:
    1. To have the contractor rectify defects (a breach of a statutory warranty) in respect of the work; or
    2. To recover compensation from the contractor for any such breach.

The NSW Home Building Regulation 2014 sets out the minimum level of cover to be provided by HBC contracts issued by SecureBuild. A contract must provide cover of no less than:

  1. In the case of a ‘construction period’ fidelity fund contract—$340,000 in relation to each dwelling to which the fidelity fund cover relates, or
  2. In the case of a ‘warranty period’ fidelity fund contract—$340,000 in relation to each dwelling to which the fidelity fund cover relates, or
  3. In the case of any other alternative indemnity contract in relation to residential building work that is required by section 92 of the Act—$340,000 in relation to each dwelling to which the fidelity fund cover relates, or
  4. In the case of any other alternative indemnity contract in relation to residential building work that is required by section 96 of the Act—$340,000 in relation to each dwelling to which the fidelity fund cover relates.

The level of cover provided by the HBC fidelity fund contracts (policies) issued to homeowner(s) by SecureBuild together with the limitations and exclusions applicable are set out within our HBC contracts. Click here for example of our HBC contract documents.

A summary of the protection provided by HBC cover is set out within the table below.

Mandatory covers and limits Yes
Minimum work value $20,000
Trigger events

The Builder has/is either:

  • Dead
  • Disappeared
  • Insolvent/ Bankrupt
  • Licence suspended
Cover Periods
  • Construction period
  • Major defects = 6 years
  • Minor defects = 2 years
Limit of Indemnity
(when cover was issued)
$340,000 (as at July 2018)
Excess Applicable $0
(for SecureBuild customers)
Cover for Non-Completion (Limit) 20% of the contracted price
(Non-Completion claims excluding defective work)
Developer Exclusion Applies Yes
Developer definition More than 4 dwellings
Applies during construction
Multi Storey exempt (above 3 storeys) Yes
Advance contract payments excluded Yes
Cover for loss of deposit (Limit) 10%
Alternative accommodation, removal and storage Included – (All claims)
Regulation 56 (3) (c)
Claimant’s Expert and Legal fees Yes – Additional to Limit of Indemnity
Cover for penalties or liquidated damages No
Time to resolve claims 90 days from receipt
(or deemed accepted)
Time for an owner to lodge a claim 6 months – defect claims
12 months – non-completion claims(or deemed accepted)