Home Building Contracts Act 1991

A policy of insurance complies with this Division if —

it insures the purchaser and the purchaser’s successors in title against the risk of being unable to take advantage of an entitlement to, or to enforce or recover under, a building remedy order under the Building Services (Complaint Resolution and Administration) Act 2011 by reason of the insolvency or death of the owner‑builder or by reason of the fact that, after due search and enquiry, the owner‑builder cannot be found; and

it provides that claims may be made under it at any time before the expiration of a period of 7 years from —

the date of issue to the owner‑builder of the relevant building licence for the building work; or

the date of grant to the owner‑builder of the relevant building permit for the building work;

it provides for insurance cover of —

at least $100 000 or such other amount as is prescribed; or

the cost of the building work,

it is issued by or on behalf of an insurer who is —

authorised under the Insurance Act 1973 of the Commonwealth to carry on insurance business; and

approved in writing by the Minister;

it complies with any other prescribed requirements.

Where the policy of insurance relates to work described in paragraph (b) of the definition of home building work in section 3, the cost of the building work for the purposes of subsection (1)(c) is only the cost of —

placing the dwelling on the land including siting, stumping and any other work in connection with that placement; and

any building work to the dwelling after placement.

An insurer is not entitled to avoid liability under a policy of insurance on the ground that the policy was obtained by misrepresentation or non‑disclosure by the owner‑builder.