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Home Warranty Insurance

What is kitchen and bathroom warranty insurance?

Like home warranty, kitchen and bathroom warranty insures the owner (either the original owner or subsequent owners) against:

* Non completion of the building contract due to death, disappearance or insolvency of the builder; and* Failure of the builder to correct faults, which are deemed by law to be the builder’s responsibility, for a nominated warranty period. These contingencies are poor workmanship, faulty design, and inadequate or unsuitable materials and is only triggered by the death, disappearance or insolvency of the builder.

Legislation

Legislation requires builders to provide home warranty insurance to consumers when entering into building contracts of $20,000 or more.

Many kitchen and bathroom renovations nowadays are in excess this $20,000 threshold and require home warranty insurance to be provided when contracting with consumers.

General home warranty insurance policies do not reflect the risk and scope of non structural works such as kitchens and bathrooms.

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