icare home building compensation fund (hbcf) provides a safety net for homeowners who have contracted for residential building work and their builder has been unable to honour their commitments under the building contract due to insolvency, death or disappearance. The safety net is also provided where the builder’s licence has been suspended for failing to comply with a tribunal or court order to pay compensation to the homeowner.
Insurance under icare hbcf is required to be obtained by builders for all residential construction projects over $20,000, with some types of construction (e.g. new high-rise buildings) exempted.
Aside from providing compensation, icare hbcf assesses builders’ eligibility to obtain cover. Eligibility is the term used to describe the entitlement that a builder has to apply for a Certificate of Insurance for home building project, and the conditions under which the Certificate of Insurance may be granted.
A Certificate of Eligibility means that a builder has been granted the entitlement to apply for job/project-specific certificate of insurance within the approved number and value of projects under construction. Builder enquiries and applications for insurance are to be made through an approved distributor (insurance broker).
References on this website to builders and building work include and apply to work undertaken by trade contractors and other building contractors such as electricians, plumbers, carpenters, swimming pool builders etc.