Home Warranty Insurance, or Home Building Compensation Fund (HBCF) as it is now referred to in NSW, is a compulsory certification undertaken for residential and domestic projects in Sydney. Homeowners nation-wide are protected by mandatory Home Warranty Insurance for domestic and residential constructions. However, the conditions surrounding Home Warranty Insurance in various states will vary.
Licensed building contractors and tradesmen are required to purchase Home Warranty Insurance prior to commencement of the work. As a homeowner, you are covered for both non-completion of work and failure to correct faults made within the nominated warranty period. If you’ve just had some recent construction on your home, you’re probably wondering “Does Home Warranty cover roof leaks?”
While Home Warranty Insurance does cover roofing and roof construction, whether or not does Home Warranty cover roof leaks depends on the circumstance of the leak. Before we get to what is covered, let’s start with the basics.
What Is Home Warranty Insurance?
Home Warranty Insurance is now referred to as Home Building Compensation Fund in NSW. The certification covers the homeowner (and subsequent owners) where the contracted building work is incomplete or defective. This includes when the builder has either passed away, disappeared, become insolvent, bankrupt during construction or has failed to respond to a rectification order within 30 days of issue.
Licensed builders or tradespersons in NSW need to get home building compensation (HBC) cover for each home building project over $20,000. The cover will work to protect homeowners as a last resort if the tradesmen cannot complete building work or fix defects. Builders are required to give proof of the warranty before they are able to start working, take deposits, or be paid for the construction work. For builders, failing to take out HBC cover for such work is an offence under NSW law.
Does Home Warranty Insurance Cover Roofs?
Wondering does Home Warranty Insurance cover roofs? Fortunately, yes, Home Warranty Insurance does indeed cover roofs and roofing in general. Home Warranty Insurance covers construction work that has not been completed, structural defects in construction work, and other loss and damage, including roof leaks.
Home Warranty Insurance covers non-completion of work. The policy for home warranting residential building work provides cover for 12 months after the failure to commence or cessation of the work. That means that if a roofing contractor fails to complete roofing work within this period, you may be eligible for a payout per the policy.
The insurance policy also covers major structural defects. For residential and domestic building work, Home Warranty Insurance provides cover for loss or damage arising from a structural defect for a period of six years after the completion of work. Building contracts generally contain a defect liability period in respect of building works that are usually between 12 to 24 months from practical completion of the building works – this will include roofing work, per the contract made up with your roofer.
Finally, Home Warranty Insurance covers other loss and damage experienced on site. The policies will provide cover for loss or damage arising from other than a major structural defect, for a period of two years after the completion of the work.
When Is Roof Leak Covered by Home Warranty?
So, does Home Warranty cover roof leaks? Well, it depends.
Roof leaks are covered by Home Warranty if the tradesman or builder is solely responsible for the roof leak. When is roof leak covered by Home Warranty? In essence, roof leaks will need to be fixed if they are the result of a major defect, an incomplete job, or a specific non-structural defect covered by the insurance policy. If the roof leak is not fixed or addressed within a certain period of time, the homeowner will be covered by the Home Warranty policy.
The period of Home Warranty cover for major defects is six years after the completion of works, and two years cover for non-major defects. If your roof leak is purely the result of storm damage or after trade damage (damage from a tradesman hired after the completion of the original build), then the roof leak will not be covered by Home Warranty. For roof leaks to be covered by Home Warranty Insurance, the leak will need to be a direct result of the tradesman or builder’s work or lack of work stated by the contract.
Does Home Insurance Cover Roof Leaks?
Home insurance will cover roof leak repair, depending on the insurance policy perils and exclusions. Generally speaking, home insurance will cover roof leaks if they are caused by falling trees or branches, other falling objects, windstorms, hail, extreme weather conditions, vandalism or accidents. If a roof leak is directly caused by one of these perils, home insurance will usually cover the costs of repairing the damage. Home Insurance cover roof leaks when the roof leak was unavoidable.
Most home insurance policies will not cover roof leaks if the leak is directly caused by lack of maintenance, roof neglect, mould algae or wood rotting, roof deterioration, or from birds, rodents and insect infestations. This is because these policy exclusions are generally considered avoidable, and roof leaks could have been prevented.
Roof Leak Repairs
If your home is suffering from roof leaks, it’s important to address the source of the leak as soon as possible to avoid it causing extensive damage to the structure of your home. Vertec Roofing are the leading experts in Sydney for roof leak detection and roof leak repairs. Not only will we help you to assess the situation with your home insurance provider, but we are the most experienced and knowledgeable team if you’re considering installing a new roof.
Here at Vertec Roofing, we don’t do anything half-heartedly. We will always ensure that your roof is an absolute priority – ensuring that the job is completed perfectly the first time around. We are committed to helping our customers by providing affordable and high-quality roofing work. If you’re looking to begin, fix, or repair your roof, we’re confident that we have the perfect roofing solution for your problem.