HBCF Premium Guidelines
We use risk-based pricing, meaning builders will pay a premium based on their insurance risk profile.
- the type of project
- the total contract value for the project
- your individual loading or discount rate
- the location of the project.
Each builder is allocated an individual loading or discount to the base premium.
The loading, or discount, is based on each builder's insurance risk profile as assessed using actuarial guidelines. We call these risk factors and they can impact the final premium price as either a discount or loading.
You can read about risk factors in the link below, and you can visit our Premium Calculator to estimate the premium for a residential building project.
Find out more about risk factors
Premium rate changes from 1 March 2024
What's changed?
- H01 – there is no change in base rates
- H02 – there is a partial movement downwards towards the latest assessment of sustainable rates
- H03 – there is a partial movement upwards towards the latest assessment of sustainable rates
- H04 and H05 – there is a movement upwards in line with the latest assessment of sustainable rates
Additionally, in line with State Insurance Regulatory Authority’s Premium Principle 1: Premiums are fair and reflective of risk, we will be introducing a maximum premium cap of $340,000 per certificate to prevent the cost of insurance exceeding the risk amount insured.
If you have any questions on the new base rates, please contact your Broker to discuss.
Premium rates for H0 Construction Types effective from 1 March 2024
Metro Base Rate
| Construction code | Base rate excluding GST and stamp duty | Base rate including GST and stamp duty |
|---|---|---|
| H01 – New Dwelling Construction | 0.886% | 1.062% |
| H02 – Building Work to an Existing Residential Apartment Building | 4.116% | 4.935% |
| H03 – New Residential Apartment Building Construction | 7.105% | 8.519% |
|
H04 – Building Work to an Existing Dwelling |
0.927% | 1.111% |
|
H05 – Swimming Pools |
0.495% | 0.594% |
Rural Base Rate
| Construction code | Base rate excluding GST and stamp duty | Base rate including GST and stamp duty |
|---|---|---|
| H01 – New Dwelling Construction | 0.709% | 0.850% |
| H02 – Building Work to an Existing Residential Apartment Building | 3.293% | 3.948% |
| H03 – New Residential Apartment Building Construction | 5.684% | 6.815% |
|
H04 – Building Work to an Existing Dwelling |
0.742% | 0.890% |
|
H05 – Swimming Pools |
0.396% | 0.475% |
Note: Rates in the table above are for rural areas A 20% discount applies.
Minimum premiums
A minimum premium of $200 applies to all projects. 10 per cent GST and a 9 per cent stamp duty are applicable to HBCF premiums. Where the contract price for a residential construction project is not known, the reasonable market cost of the labour and materials involved in the project is used to calculate the applicable premium.
