Yes. WA Government guidance, published 20 May 2025, says an owner-builder intending to sell within seven years from the time the building permit was granted must obtain home indemnity insurance (HII). The HII certificate must be provided to the prospective purchaser before settlement.
Figures checked 1 October 2026.
How do the seven-year and settlement rules work together?
The requirements apply at two different stages:
| Stage | Required action |
|---|---|
| Planning to sell within seven years of the building permit being granted | The owner-builder must obtain HII. |
| Before settlement | The HII certificate must be provided to the prospective purchaser. |
The certificate should therefore be obtained and checked as part of preparing for the sale, rather than left until settlement. If the intended sale is close to the seven-year point, confirm the timing with Building and Energy before relying on an exemption or concluding that HII is unnecessary.
Is the $20,000 building-work threshold the only trigger?
No. The WA Government separately states that residential building work over $20,000 must be covered by HII. It also gives owner-builders a clear sale-related requirement: if they intend to sell within seven years of the building permit being granted, they must obtain HII.
An HII exemption should not be assumed. If a builder claims an exemption under the Home Building Contracts (Home Indemnity Insurance Exemptions) Regulations 2002, check the project with Building and Energy.
What must the builder do before work starts?
For residential building work over $20,000, the builder must obtain the HII certificate for the proposed work before claiming payment from the owner or commencing work under the contract. A copy must be provided to:
- the owner; and
- the permit authority as part of the building approval process.
There is also an earlier homeowner-document requirement. Before the home building contract is signed or a deposit is paid, the builder must provide the owner with the “Notice for the homeowner” in Schedule 1 of the Home Building Contracts Regulations 1992. This notice summarises the main requirements of the Home Building Contracts Act 1991, including HII.
How can the HII certificate be checked?
Under the permit process described by the WA Government, the permit authority must ensure that:
- the builder submitted an HII certificate for the proposed work;
- the certificate is watermarked;
- it was issued by QBE; and
- its details match QBE’s Builders Warranty Insurance Certificate Register.
The register can also be used to confirm that a builder-provided certificate was issued by QBE and to compare its details with QBE’s records.
An HII eligibility certificate or a construction/public liability insurance certificate is not a substitute for the HII certificate.
What protection does HII provide?
HII is intended to protect owners against losing their 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.
Examples of a relevant circumstance include:
- an individual builder dying, disappearing or becoming insolvent;
- a non-individual builder, such as a corporation, ceasing to exist or becoming insolvent; or
- the State Administrative Tribunal cancelling the builder’s registration, or the Building Services Board not renewing it, because the builder failed to meet prescribed financial requirements.
The policy terms still matter when assessing whether a particular loss is covered. Check the product disclosure statement for the applicable cover, conditions and exclusions.
What should be done if the certificate is missing?
Do not assume that an HII eligibility certificate or a public liability policy satisfies the requirement. The WA Government warns that builders who fail to obtain required HII risk substantial penalties and disciplinary proceedings.
If the certificate is missing, does not match the register, or an exemption is being claimed, contact Building and Energy. It can also advise of approved HII providers. The regulator lists 1300 489 099 and bcinfo@demirs.wa.gov.au for HII information.
Check the current regulator page and the policy’s product disclosure statement before acting. This is general information, not financial or legal advice.
Sources
- Home indemnity insurance – a reminder about your obligations — WA Government, published 20 May 2025.
FAQ
When must the HII certificate be provided to the buyer?
It must be provided to the prospective purchaser before settlement occurs.
Does an HII eligibility certificate satisfy the requirement?
No. The WA Government states that an HII eligibility certificate must not be supplied instead of the HII certificate of insurance.
Can construction or public liability insurance replace HII?
No. A construction or public liability insurance certificate is also not a substitute for the required HII certificate.
What if the owner-builder claims an HII exemption?
Check with Building and Energy. The exemption regulations and the circumstances of the project must be considered before treating HII as unnecessary.