Home warranty insurance for roofing work: thresholds and cover by state, including Victoria's 2026 change

Home warranty insurance (called home building compensation cover in NSW, Home Warranty insurance in Victoria and Queensland, and home indemnity insurance in WA) protects you if the contractor cannot finish the job or fix defects, usually because they have died, disappeared or become insolvent, and in some schemes more broadly. A re-roof needs it when the job is above your state's threshold. As at October 2026: NSW over $20,000; Queensland over $3,300 for roof restoration or repair and most residential work; Victoria over $20,000 for the new first resort Home Warranty scheme that replaced domestic building insurance from 1 July 2026 (previously over $16,000); and WA over $20,000 for work that needs a building permit. The contractor arranges and pays for it, and must give you the certificate before taking a deposit.

This guide is part of the roof replacement cost overview.

Thresholds and cover at a glance

Figures for NSW, Victoria, Queensland and WA were checked against official guidance in October 2026. SA, Tasmania, the ACT and the NT have smaller or different schemes; confirm with the regulator.

First resort or last resort?

This difference matters a lot for roofing defects.

• Last resort cover (NSW HBC, WA HII and Victoria's old DBI) generally pays only if the builder has died, disappeared or become insolvent, or in NSW also if the builder fails to comply with a tribunal or court order. If the builder is still trading but refuses to fix a leak, you go through the dispute process first.
• First resort cover (Victoria's Home Warranty insurance from 1 July 2026, and the Queensland scheme for defective work) lets you claim for incomplete, faulty or non-compliant work in a wider range of situations, including where the builder does not follow an order.

Which Victorian scheme applies depends on when the contract was signed and when the cover was issued. If your roofing contract was signed before 1 July 2026, the old DBI rules probably apply. Check with the BPC.

Does re-roofing count?

Generally yes, if the value is over the threshold and the work is residential building work. Points to watch:

• Queensland lists restoring or repairing roofs as insurable work over $3,300. Commercial work, owner-builder work and work by unlicensed contractors are not insurable.
• NSW requires HBC on residential building work over $20,000; specialist trade work such as plumbing on its own has different rules.
• Victoria has historically exempted some types of work from DBI by ministerial order; ask the contractor which scheme they say applies and confirm with the BPC if they say none.
• WA HII applies only to work that needs a building permit, so a re-roof that does not need a permit may not need HII even if it costs more than $20,000.

Worked example (illustrative)

A Victorian owner signs a $27,500 re-roof contract in August 2026. Because the contract was signed after 1 July 2026 and the price is over $20,000, the contractor must arrange Home Warranty insurance. The deposit cap in Victoria for a contract of $20,000 or more is 5%, so the deposit can be up to 27,500 × 5% = $1,375 (deposit limit check).

The same $27,500 job in Brisbane needs QBCC home warranty cover because it is over $3,300, and the deposit cap for contracts of $20,000 or more is 5%: 27,500 × 5% = $1,375. In Perth, if the re-roof needs a building permit, HII is required because the value is over $20,000 and the deposit cap is 6.5%: 27,500 × 6.5% = $1,787.50.

How to check the certificate

1. Ask for the certificate of insurance before you pay anything. In NSW the contractor cannot ask for a deposit until cover is in place and you have the certificate.
2. Check that the certificate names you, the property address, the contractor (matching the licence) and the contract price.
3. Verify it independently: NSW HBC Check through icare, the BPC in Victoria, the QBCC's records in Queensland, or the insurer's certificate register in WA.
4. Keep it with your contract. You will need it if you claim.

What home warranty insurance does not do

• It does not replace your home building insurance against storms, fire or other events.
• It does not cover payments above the legal deposit cap; the QBCC states overpaid deposits cannot be recovered through the scheme.
• It has time limits for claims, often tied to when you became aware of the problem. Notify early.
• It is not a quality guarantee for work you have not contracted for, such as an extra job paid in cash outside the contract.

Frequently asked questions

Who pays the premium?

The contractor arranges and pays for it, and usually builds the cost into the price. Do not accept a contractor's offer to "save money" by skipping it where it is required; that is unlawful and leaves you exposed.

My roofer says the job is under the threshold. How do I check?

Add up the whole job including GST, materials and any likely variations. If the total is close to the threshold, ask the regulator. Variations that push the price over the threshold can bring the job into the scheme.

Can I claim if the roof leaks after two years?

Possibly, depending on the state, whether the defect is structural or non-structural, the cover period and whether the builder is still trading. Start with a written complaint to the builder and the regulator. See defective roof work and statutory warranties.

Is the certificate transferable if I sell?

Cover generally attaches to the property and benefits later owners within the cover period. Pass the certificate on with the contract documents.

Sources

• icare NSW — Home Building Compensation Fund and HBC Check
• Building and Plumbing Commission Victoria — Home Warranty insurance from 1 July 2026 and earlier DBI
• Consumer Affairs Victoria — domestic building insurance and insolvency guidance
• Queensland Building and Construction Commission — Queensland Home Warranty Scheme, maximum amounts and insurable work
• WA Government Building and Energy — home indemnity insurance fact sheets