Queensland Home Warranty Insurance for Plumbers: When Does the $3,300 Rule Apply?

Figures checked 1 October 2026.

According to the Queensland Building and Construction Commission (QBCC), home warranty insurance is compulsory for residential construction work valued at more than $3,300, including materials, labour and GST (QBCC page dated 11 May 2025). The QBCC’s homeowner guide dated 24 January 2025 confirms that this can include new homes, extensions, renovations and repairs, but not commercial building projects or work in or for a multiple dwelling of more than three storeys, excluding a mainly carpark level.

What counts as residential construction work?

The Queensland Home Warranty Scheme is administered by the Queensland Government through the QBCC. Its public guidance identifies residential building projects such as new homes, extensions, renovations and repairs as work that can require cover.

These are the categories expressly addressed in the QBCC material. An unusual project should be checked against the regulator’s current guidance rather than assumed to be covered.

When does a plumber’s job trigger the $3,300 rule?

For a residential extension, renovation or repair, the QBCC threshold is more than $3,300. The value includes:

• materials;
• labour; and
• GST.

The wording is strictly “more than $3,300”, not $3,300 or more. A project valued at exactly $3,300 does not meet the threshold as stated by the QBCC.

The scheme is not a blanket requirement for every plumbing job. Both the value of the residential construction work and whether the project falls within the scheme’s residential scope must be considered. Commercial work and work in or for a multiple dwelling of more than three storeys are outside the scheme.

Who pays the home warranty insurance premium?

For fixed-price and cost-plus residential contracts, the contractor pays the premium to the scheme. The contractor collects it from the home owner, includes it in the contract and pays it before work begins.

Where a project will cost more than $3,300, including materials, labour and GST, the home warranty insurance premium should be included in each quote so the quotes can be compared accurately. Contractors must take out the insurance or face significant penalties.

No premium amount is stated in the QBCC material used for this article. Plumbers should not invent one or treat an unexplained allowance as the actual scheme premium; the amount must come through the contractor’s contract or quote.

Home warranty insurance is also not home and contents insurance. It relates to residential construction work and does not replace insurance for the home or its contents.

Does the contract type change the protection?

Yes. The contract type affects the claim protection available under the scheme.

A non-completion claim requires a fixed-price residential contract with a licensed contractor. If the contractor does not or cannot finish the contracted work, the scheme needs to know the amount agreed under the contract to finish it.

A cost-plus contract does not provide certainty about the final price. That makes it impossible for the scheme to quantify the home owner’s loss in the same way. The QBCC does not recommend cost-plus contracts for residential building work because they can limit scheme protections.

For a plumber, the contract type should therefore be settled before the work proceeds, not after a dispute arises.

What can the scheme pay for?

Home warranty insurance covers the home owner for loss if something goes wrong during the building process. Depending on the contract and claim type, the QBCC identifies claims for:

• non-completion of contracted work;
• defective work that the contractor does not fix;
• subsidence or settlement; and
• certain damage following an accepted non-completion claim, including fire, storm, vandalism or theft.

Claims remain subject to limitations and some exclusions. Home warranty insurance pays a maximum of $200,000 on claims, but that ceiling does not mean every claim will be paid to that amount.

After paying a claim, the scheme tries to recover the amount paid to finish or fix the work from the contractor.

How long does cover last?

The QBCC’s scheme page states that cover lasts for 6 years and 6 months from the earliest of:

• entering into the contract;
• paying the premium; or
• commencing the work.

If the residential construction work took more than six months to complete, the cover period can be extended by six months from the cover commencement day.

The QBCC’s homeowner guide also describes six years and six months from the contract date for structural defects and around six months from completion for non-structural work. It cautions that these are general timeframes and that specific circumstances may vary.

Cover cannot be renewed after it expires, and claim timeframes depend on the type of claim. Check the current cover dates rather than assuming every claim has the same deadline.

Does the insurance stay with the property?

Home warranty insurance is attached to the property, so it remains in place if the home is sold. A home buyer or the buyer’s legal agent can search for insurance attached to the property.

The insurance cannot be transferred between contractors. Paying a contractor more than allowed by law or under the contract can also affect the insurance.

What should you check before relying on the scheme?

Before accepting residential construction work, check:

1. whether the project is residential construction work covered by the scheme;
2. whether its value, including materials, labour and GST, is more than $3,300;
3. whether the contract is fixed-price or cost-plus;
4. whether the home warranty insurance premium is included in the quote and contract;
5. whether the contractor has arranged the insurance before work starts; and
6. the applicable claim type, timeframes, limitations and exclusions.

This is general information, not financial or legal advice. Check the current QBCC regulator page and the contract’s PDS before making a decision or relying on cover.

Sources

• What is home warranty insurance | Queensland Building and Construction Commission
• Home warranty insurance: A guide for homeowners | Queensland Building and Construction Commission

FAQ

Is home warranty insurance compulsory for every plumbing job?

No. It is compulsory for residential construction work valued at more than $3,300, including materials, labour and GST, but the scheme does not cover commercial projects, work in or for multiple dwellings of more than three storeys, or other categories identified as outside its scope.

Does a plumbing quote of exactly $3,300 require home warranty insurance?

The QBCC threshold is more than $3,300. A project valued at exactly $3,300 does not meet the threshold as worded, although the contract type and residential scope must also be considered.

Is home warranty insurance included in a residential renovation quote?

If the project is valued at more than $3,300, including materials, labour and GST, the premium should be included in each quote and in the home owner’s contract. The contractor pays the premium to the scheme before work begins.

Can a home owner make a non-completion claim under a cost-plus contract?

Cost-plus contracts are covered only for defective-work claims. A non-completion claim requires a fixed-price residential contract with a licensed contractor.

Does home warranty insurance continue after the home is sold?

Yes. The insurance is attached to the property and remains in place after sale for its applicable cover period. It cannot be transferred between contractors.