Home Warranty Insurance
Under Queensland law, a Home Warranty Insurance Policy must be taken out with the QBCC for any painting works over $3,300 inc GST (including labour and materials) and a Contract entered into between the Contractor and property owner.
The Scheme applies to the internal and external painting of residential buildings with up to three storeys of residential units. It applies to both new painting and re-paint works.
This Home Warranty Insurance policy protects the property owner in the event of incomplete or defective contract works. The Contractor collects the premium from the property owner, and pays the premium to the QBCC directly.
The premium is due at the time of signing the contract and paying the deposit.
What coverage is provided for painting?
The Scheme covers consumers for loss suffered if a contractor (or an individual where fraud or certain representations are made) fails to complete a contract for residential work or fails to rectify defective work. The terms of cover, however, contain certain limitations and restrictions. The term “residential construction work” includes primary insurable work.
This generally means that incomplete or defective painting work will be covered by the Scheme. The Scheme does not cover defective products however. For example, a defective batch of paint resulting in peeling will not be covered, however, using the incorrect paint for an area resulting in peeling will be covered.
Non-structural defects like painting are generally covered for 6 months after the day the work is completed. Consumers must lodge the claim with the QBCC within 7 months of the completion date.
Structural defects are generally covered for 6 years 6 months from the date of the contract, date of payment of insurance premium or date the works start (whichever is earliest). Consumers must lodge their claim with the QBCC within 3 months after becoming aware of the defect. The following are some examples of when painting can have a structural impact on a building:
painting of exposed metal elements in coastal environments
where painting provides weather proofing of building elements