Yes. For residential building work valued over $20,000, the builder must take out home indemnity insurance (HII) in the owner’s name before accepting payment or commencing work. The WA Government’s Home indemnity insurance fact sheet, published 25 September 2025, states that requirement (figures checked 1 October 2026). The builder must also give the owner a copy of the certificate and provide one to the permit authority as part of the building approval process, according to the WA Government’s Home indemnity insurance reminder, published 20 May 2025.
What does “over $20,000” mean for a plumbing job?
The threshold applies when the work is residential building work valued over $20,000. Residential building work contracts in Western Australia are governed by the Home Building Contracts Act 1991.
The cited WA material specifically says HII is not required for associated work performed alone under a separate contract, including:
- swimming pool installation;
- carport installation;
- pergola installation; or
- landscaping.
That exception concerns work performed alone under a separate contract. If a plumbing package or other work is combined with the wider building project, or the contract structure is unclear, ask Building and Energy rather than relying on the value alone.
The official wording is also over $20,000, not $20,000 or more. The cited material does not resolve how a job valued at exactly $20,000 should be treated.
Why must HII be in the owner’s name before payment?
HII protects owners against losing a deposit or suffering other financial loss if the builder cannot complete the work or meet a valid claim for faulty or unsatisfactory building work because of a relevant circumstance concerning the builder.
Taking out HII in the owner’s name before payment or commencement places the required protection in place before contractual work begins. Builders who fail to obtain HII when required risk substantial penalties and disciplinary proceedings.
What must the builder provide before work starts?
There are several separate checks:
| When | Required action |
|---|---|
| Before a home building work contract is signed or a deposit is paid | The builder must give the owner the Notice for the homeowner, being Schedule 1 of the Home Building Contracts Regulations 1992. It summarises the main requirements of the Home Building Contracts Act 1991, including HII. |
| Before accepting payment or commencing contract work | The builder must obtain an HII certificate for the proposed work. |
| After obtaining the certificate | The builder must give a copy to the owner. |
| As part of the building approval process | The builder must provide a copy to the permit authority. |
The homeowner notice and the HII certificate serve different purposes. Receiving a contract document does not replace the requirement for the actual HII certificate.
Is an HII certificate the same as public liability insurance?
No. The cited WA guidance identifies construction/public liability insurance as a separate document and says its certificate must not be supplied instead of an HII certificate.
| Point | HII | Construction/public liability |
|---|---|---|
| Purpose described in the WA material | Protects the owner against specified financial loss resulting from a relevant circumstance concerning the builder | The cited material does not set out its full coverage |
| Insurance requirement | Required for residential building work valued over $20,000 | Does not satisfy the HII certificate requirement |
| Acceptable proof | HII certificate of insurance for the proposed work | Its certificate cannot substitute for HII |
| Policy terms | Check the HII policy’s PDS | Check the public liability policy’s PDS for its own scope and conditions |
At permit stage, the permit authority must ensure that:
- the builder submitted an HII certificate;
- the certificate is watermarked;
- it was issued by QBE;
- its details match QBE’s records in the Builders Warranty Insurance Certificate Register; and
- the builder has not supplied an HII eligibility certificate or construction/public liability insurance certificate instead.
Owners can also use QBE’s register to match the certificate details with QBE’s records.
Which builder events can activate HII protection?
The WA Government identifies these events as circumstances that can engage HII protection:
| Builder event | Relevant circumstance described by the WA Government |
|---|---|
| Individual builder | The builder dies, disappears or becomes insolvent. |
| Non-individual builder, such as a corporation | The builder ceases to exist or becomes insolvent. |
| Builder registration | The State Administrative Tribunal cancels the builder’s registration, or the Building Services Board does not renew it. |
The registration cancellation or non-renewal must have occurred because the builder failed to satisfy the financial requirements prescribed in regulations under the Building Services (Registration) Act 1991 (WA).
A relevant circumstance does not simply mean that a project has a complaint or delay. The connection between the builder’s event, the inability to complete the work or meet a valid claim, and the financial loss is central to the protection described in the WA material. The issued policy’s PDS sets out the applicable terms.
What happens if the builder changes during construction?
If the builder changes before the works are completed, the proposed new builder must obtain an HII certificate for the proposed building work or required stage and provide a copy to the owner.
The new builder is also advised to provide a copy to the permit authority. Owners should check that the replacement builder has HII for the relevant work and has supplied the certificate.
What if the builder says the project is exempt?
A builder may claim an exemption under the Home Building Contracts (Home Indemnity Insurance Exemptions) Regulations 2002. If there is uncertainty about whether the project qualifies, check with Building and Energy before treating the HII requirement as satisfied.
Building and Energy can also advise about approved HII providers. More information is available through its HII fact sheet, 1300 489 099, or bcinfo@demirs.wa.gov.au.
Check the current WA Government regulator material and the issued policy’s PDS before relying on a certificate or deciding which protections apply. This is general information, not legal or financial advice.
Sources
FAQ
Does work valued at exactly $20,000 need HII?
The cited WA materials refer to work valued over $20,000. They do not say whether a job valued at exactly $20,000 falls within that rule, so confirm the boundary case with Building and Energy.
Can a builder start work and obtain HII afterwards?
No. The builder must take out HII in the owner’s name before accepting payment or commencing the work.
Does public liability insurance satisfy the HII requirement?
No. A construction/public liability insurance certificate cannot be supplied instead of an HII certificate. Read the public liability policy’s PDS separately for its own coverage, but it does not establish compliance with the HII requirement.
What must happen if a new builder takes over?
The proposed new builder must obtain an HII certificate for the relevant work or stage, give a copy to the owner and is advised to provide one to the permit authority.
Does a separate pool, carport, pergola or landscaping contract need HII?
The cited WA guidance says HII is not required when associated work such as these is performed alone under a separate contract. Ask Building and Energy if the work is combined with other residential building work or the contract structure is unclear.
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