WA: Home indemnity insurance (selling within 7 years)
In WA, owner-builders usually don’t need home indemnity insurance to build — but it can become mandatory if you sell within 7 years of the building permit date.
General information only (not legal advice). Confirm your situation with Building and Energy, your permit authority, and an approved insurer.
When home indemnity insurance is required (WA)
- Owner-builders generally don’t need it to build — but…
- If you sell (or dispose of) the owner-built home within 7 years from the date the building permit was granted, you’ll generally need a home indemnity insurance policy in place.
- The policy must typically cover the purchaser (and subsequent owners) for the remainder of the 7-year period.
- If the required policy can’t be obtained, you generally can’t sell within the 7 years.
What it’s for (plain English)
WA home indemnity insurance is not “general defect cover”. It’s designed to protect the owner (and later owners) if a serious building problem arises and the responsible builder/owner-builder can’t (or won’t) fix it due to specific circumstances (e.g. disappearance, death, insolvency).
Value threshold and “associated work”
In WA, home indemnity insurance is commonly discussed in relation to residential building work valued over $20,000. Some “associated work” (e.g. standalone pergola/fence/pool-type items) can be treated differently.
What to do if you might sell within 7 years
- Find your building permit grant date (the 7-year period is tied to this date).
- Get your documentation in order: permits, approvals, inspection records, trade certificates, photos.
- Contact an approved insurer early — don’t wait until you’re signing the sale contract.
- Plan for buyer expectations: you may be asked for evidence of compliance and rectification history.
- Provide the buyer evidence (policy/certificate) before the sale is finalised if required.