Before you pay a plumber, use HBC Assist to check whether the residential job needs home building compensation (HBC) cover; if it does, use the free public HBC Check register to confirm the cover is recorded and obtain the certificate of insurance before any deposit or work starts (figures checked 1 October 2026). The NSW Government’s Insurance cover for building work, dated 06 July 2026, says a licensed builder or tradesperson must have HBC cover for each NSW home building project over $20,000 including GST. Service NSW’s Apply for home building compensation cover, dated 9 September 2024, says the contractor must hold cover of at least $340,000 before work starts or any money, including a deposit, is taken.
Does a $20,000+ plumbing job always need HBC cover?
Not based on price alone. Treat $20,000+ as a prompt to check, but apply the current Service NSW conditions together:
| Check | Current requirement |
|---|---|
| Contracting relationship | The work is contracted with a homeowner, owner-builder or developer. |
| Project value | The contract price, or market cost of labour and materials, is over $20,000 including GST. |
| Exemption | The project is not exempt from insurance. |
| Cover required | Each qualifying job must have HBC cover of at least $340,000. |
| Timing | Cover must be in place before work starts or any money, including a deposit, is taken. |
Projects that typically require HBC cover include:
- Alterations or renovations of residential buildings of any height.
- Construction of houses, duplexes or triplexes.
- Low-rise residential multi-unit buildings up to 3 storeys high.
- Structures associated with a home, including backyard swimming pools, spas, garages and outbuildings.
These are common examples, not a decision for every plumbing job. Use HBC Assist to assess the actual scope and contracting circumstances.
How do I check that the cover matches the actual job?
- First, read the quote or contract. Identify the residential site, named builder or tradesperson, plumbing and building scope, contract price including GST, proposed deposit and start date.
- Next, run HBC Assist. Use those job details to check whether the job needs HBC cover.
- Then, search HBC Check. This free public register lists jobs with HBC cover, and anyone can use it to confirm that a builder or tradesperson has valid cover for residential work in NSW.
- Compare the result with the paperwork. Where shown, check that the registered builder or tradesperson, site and work correspond to the job being contracted. Service NSW’s guidance does not enumerate every field displayed by HBC Check, so do not assume a similar name or broad trade description proves that a different job is covered.
- Resolve missing or conflicting details. If no matching job appears, pause the payment process and ask the plumber to reconcile the register entry with the contract. If the first search is well before payment, check again; Service NSW does not state how long a result should be relied on.
- Obtain the certificate for a qualifying job. The certificate of insurance must reach the homeowner before a deposit is taken or work starts.
Is HBC Check enough, or do I still need the certificate?
HBC Check and the certificate serve different purposes. HBC Check confirms whether the job appears on the public register; Service NSW separately requires the contractor to provide the certificate of insurance to the homeowner before taking a deposit or starting work on each qualifying job.
A certificate of eligibility is different. It is an application prerequisite obtained through the broker distributor, not evidence that HBC cover has already been issued for the job.
Service NSW states that failing to take out the required HBC cover and provide the certificate is an offence under NSW law.
Why does HBC cover matter?
The NSW Government describes HBC cover as last-resort protection where building work cannot be completed or defects cannot be fixed. Service NSW says it can help where the builder cannot complete the work or honour warranty obligations because of insolvency, licence suspension, death or disappearance, among the specified circumstances.
That is why a general statement that a plumber has insurance is not the same as confirming HBC cover for the residential job being paid for.
What if the plumber says the work is subcontracted?
Service NSW provides a clear exception: HBC cover is not needed when the work is subcontracted from another licensed contractor.
Check who contracted with whom and confirm that the other party is a licensed contractor. Keep the explanation with the quote or contract. If the contracting structure is unclear, do not treat the word “subcontractor” as proof that the exception applies; resolve the arrangement before relying on it.
What if HBC Assist says cover is required but HBC Check shows none?
The applicant needs:
- A contractor licence for building, trade or specialist work.
- An ABN/ACN.
- A certificate of eligibility.
The application process is to find an insurance broker distributor from icare HBCF’s list, obtain the certificate of eligibility from that distributor and submit the HBC application through the distributor. For a qualifying job, the contractor must still take out the cover and provide the certificate of insurance before any deposit or work starts.
The State Insurance Regulatory Authority (SIRA) regulates the HBC scheme, and icare HBCF is the only insurance provider that offers HBC cover.
What should I check before relying on this workflow?
Check the regulator page for the current requirement and read the relevant policy’s PDS for its coverage terms. This is general information, not financial or legal advice.
Sources
- Insurance cover for building work | NSW Government
- Apply for home building compensation cover | Service NSW
FAQ
Is every plumbing job over $20,000 automatically required to have HBC cover?
No. The job must meet the contracting, value and exemption requirements, and the applicable rule is over $20,000 including GST. Use HBC Assist for the job-specific assessment.
What should I do if HBC Check shows no matching job?
Do not treat the missing entry as payment clearance. Ask the plumber to reconcile the contract and register details. If HBC Assist says cover is required, obtain the certificate before a deposit or work starts; contact Building Commission NSW or check SIRA information if the position remains unclear.
Is an HBC Check result enough instead of receiving the certificate?
No. HBC Check is the public-register check, while the certificate of insurance is the document Service NSW requires the contractor to provide to the homeowner before a deposit or work starts.
Does the subcontracting exception remove the need to verify the arrangement?
No. The exception applies when the work is subcontracted from another licensed contractor. Confirm the actual contracting relationship rather than relying only on the label used by the plumber.
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