# Forum More Stuff Debate & Technical Discussion  should i worry about home owners warrenty?

## Lakeside

hi all, getting a (chippy) to do a fair amount of work on my house (non structural).  
Looking at $35,000 for the job.  
Don't know much in this area, but i do know its compulsory for works over $12,000 (nsw at least), his done really quality work for me before, his not doing a runner on me, and agreed to pay him in installments as we go. 
I feel comfortable going without insurance, it was my suggestion not to bother, Just wanted some opinions, does council ask for these insurances when inspecting? 
cheers  :2thumbsup:

----------


## watson

What are you getting done for 35K (non-structural) ?? 
Not  questioning....just curious.

----------


## andy the pm

> hi all, getting a (chippy) to do a fair amount of work on my house (non structural).  
> Looking at $35,000 for the job.  
> Don't know much in this area, but i do know its compulsory for works over $12,000 (nsw at least), his done really quality work for me before, his not doing a runner on me, and agreed to pay him in installments as we go. 
> I feel comfortable going without insurance, it was my suggestion not to bother, Just wanted some opinions, does council ask for these insurances when inspecting? 
> cheers

  To be honest, its not really your choice.
A licenced builder in NSW is required by law to have home warranty inssurance for any work over $12k.
If you are doing the work as an owner builder then you are required to take out the insurance if you sell your property within 6 years of the work being carried out. 
Andy

----------


## mik_64

That is correct works over 12k need the Insurance.  
If they are doing only Carpentry as defined by fair trading you will not need a builders licence but they will need the insurance and licence 
Do you need it?
$35k is a lot of money. If they go broke disappear etc you are high & dry. How well do you know these guys?

----------


## dib

Does your job have any structural stuff in it ?.   I would argue that non-structural work is not "works".  If you pay painter to paint a really big house it could cost $12000, having to tell the council and taking insurance out on that is a little bit silly. 
Are talking about warranty insurance or builders insurance.  Warranty insuarance is compululsory if you sell with a period of time, and it would make no sense to get it until you sell.  Builders insurance will cover public liabiltity, fire, theft etc, and the answer comes down to the amount of risk YOU are willing take.  When I built a new house from scratch I took out insurance, but the renos I have done I hav'nt.   
A problem may come about if someone (uninsured) injures themselves badly on your site.

----------


## Gaza

> A problem may come about if someone (uninsured) injures themselves badly on your site.

  that is covered by workers compensation & public liability insurnace not home owns warranty. 
there is no way of the 6 year rule for own builder being an issue as you are not lodging a DA so the age of the works will be unknow.

----------


## dib

Gaza, I completely agree. That's why asked what the query was actually in relation to ie warranty insurance or builders insurance ( being fire, theft ... public liability).  If there is nothing structural going on the council does not need to know.

----------


## barney118

When does the insurance start? at final certificate/inspection from council? So if I am lazy and dont call for final inspection and its been over 6yrs then what?
If the house burns down while you are building how do you insure this? cover the works to date. At what point does it come under your house and building insurance? If I choose to take out insurance at "the finished size of house and cost to replace it, if it burns down due to electrical fault what happens?

----------


## attie

> I feel comfortable going without insurance

  Then do it Lakeside, you trust the man and that's good enough.

----------


## attie

> When does the insurance start? at final certificate/inspection from council? So if I am lazy and don't call for final inspection and its been over 6yrs then what?

  In Qld the insurance starts as soon as you pay up   

> So if I am lazy and don't call for final inspection and its been over 6yrs then what?

  You can't sell the house until you get that completion certificate, sticky heap of crap isn't it. Gotta keep someone in a job

----------


## ringtail

Not entirely true. There is no law that says you must have a final inspection on a new house or renno / addition. If you sell the house it will become a matter of negotiation with the purchaser. If you choose later to get a final inspection you will have re submit the plans to the certifier, pay for another DA ( which expires 18 months after approval ) and then have the final. If you are an OB, the 6 year rule starts from the date the final certificate is issued

----------

