No—not by relying on the outgoing builder’s home indemnity insurance (HII) certificate. The WA Government’s reminder, published 20 May 2025, says a proposed new builder taking over before completion must obtain an HII certificate for the proposed work or required stage and provide a copy to the owner. The same guidance states that residential building work over $20,000 must be covered; figures were checked 1 October 2026.
Does an existing building permit remove the new-cover requirement?
No. The change-of-builder rule applies when the builder changes during construction and before completion of works for which a building permit was granted.
The requirement is specific to the proposed new builder: they must obtain an HII certificate for the proposed building work or the stage of building work required. The WA Government’s guidance does not describe a process for transferring the outgoing builder’s certificate, so an owner should ask the incoming builder for its own certificate rather than assume the existing permit settles the insurance requirement.
What must the incoming builder provide?
The handover requirements divide into a required certificate, a required owner copy and an advised permit-authority copy:
| Item | What the WA Government’s guidance says |
|---|---|
| HII certificate | The proposed new builder must obtain it for the proposed building work or the stage required. |
| Copy for the owner | The proposed new builder must provide a copy to the owner. |
| Copy for the permit authority | It is advisable for the proposed new builder to also provide a copy to the permit authority. |
Owners are encouraged to check that the new builder has HII in place for the residential building work and has provided them with a copy of the certificate.
What does HII protect?
Under the WA Government’s reminder, 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 a relevant circumstance exists in relation to the builder.
Builders who fail to obtain HII when required risk substantial penalties and disciplinary proceedings.
How can an owner check that the document is the right certificate?
Before granting a building permit for residential building work over $20,000, a permit authority must ensure that:
- the builder submitted an HII certificate for the proposed work;
- the certificate is watermarked;
- the certificate was issued by QBE and its details match QBE’s records in the Builders Warranty Insurance Certificate Register; and
- the builder has not substituted another document, such as an HII eligibility certificate or a construction/public liability insurance certificate.
That register can also be used to confirm that a builder-provided certificate was issued by QBE and to match its details with QBE’s records. Building and Energy can also advise of approved HII providers.
What if separate work or an exemption is claimed?
HII is not required for associated work performed alone under separate contracts, such as installing a swimming pool, carport or pergola, or landscaping.
If a builder claims an exemption under the Home Building Contracts (Home Indemnity Insurance Exemptions) Regulations 2002, check with Building and Energy if there is uncertainty about whether the project is exempt. A change of builder should not be treated as an exemption unless that basis is properly established.
What should be checked before relying on the cover?
This is general information, not financial or legal advice. Check the WA Government regulator page for current requirements and read the relevant policy’s PDS for its coverage, exclusions and conditions.
Sources
FAQ
Can the incoming builder rely on the outgoing builder’s HII certificate?
No. The proposed new builder must obtain an HII certificate for the proposed work or required stage. The WA Government’s stated handover rule does not provide for relying on the outgoing builder’s certificate.
Must the new certificate cover every remaining part of the project?
It must cover the proposed building work or the stage of building work required. The exact scope should match the work the incoming builder is taking over.
Who must receive a copy of the certificate?
The proposed new builder must provide a copy to the owner. Providing a copy to the permit authority is also advised.
Is an HII eligibility certificate or public liability certificate enough?
No. The WA Government says the permit authority must receive an HII certificate of insurance, not an HII eligibility certificate or a construction/public liability insurance certificate in its place.
What should the owner do if the builder says HII is not required?
Ask for the basis of the exemption and check with Building and Energy if there is uncertainty. Separate associated work and an exemption under the relevant regulations are different from the change-of-builder requirement.