Home Indemnity Insurance in WA, what it covers and how to claim it

If your builder has stopped work, gone insolvent, disappeared, or passed away, Home Indemnity Insurance exists specifically to protect you. In Western Australia, HII is mandatory for most residential building projects and covers homeowners against financial loss when a builder can no longer complete the work. Here's what you need to know and exactly what to do.

First, understand what you're covered for. HII in WA protects homeowners when a builder cannot complete construction due to death, insolvency, or disappearance. Policies typically cover homes valued up to $200,000 though this can vary, so reviewing your specific policy details is essential before assuming what's included.

Contact your insurance provider as your very first step. Before anything else, call your HII provider and explain the situation. This conversation starts the clock on your claim and prevents unnecessary delays. It can feel daunting when you're already dealing with the emotional weight of an unfinished home, but the sooner you make that call the sooner things start moving in the right direction.

Document everything thoroughly. Pull together every contract, receipt, invoice, and piece of correspondence with your original builder. Your insurer needs a clear picture of what was agreed, what was paid, and what stage the build is at. The more organised this documentation is the smoother your claim process will be.

Formally initiate your claim. Once you've spoken to your insurer and gathered your documents, lodge the claim formally. In many cases HII will cover the cost of completing your home up to the policy limit. Be prepared to walk through the remaining scope of work in detail, knowing exactly what's left to be done makes this conversation much easier.

Find a builder experienced in takeover builds. This is where most homeowners get stuck. Most builders won't take on someone else's unfinished project, it requires specific expertise, a willingness to work through another builder's decisions, and the confidence to commit to a fixed-price completion. Patterson Construction specializes in exactly this. We assess the build thoroughly, provide a transparent scope of works, and work directly with your insurer throughout the process.

Coordinate your new builder with your insurer. HII claims often involve inspections, progress reports, and assessments to ensure work meets the standards outlined in your policy. An experienced builder will know how to navigate this process without causing delays or compliance issues. We've done this many times and we'll handle that coordination on your behalf.

Stay informed on WA building requirements. Coverage limits and building regulations in WA can change, so it's worth checking current guidelines with the Department of Mines, Industry Regulation and Safety. Knowing the boundaries of your coverage helps you and your builder plan realistically and avoid unexpected costs.

You don't have to navigate this alone. If your home is sitting unfinished and you're not sure where to start, call Lucas. We'll assess your situation honestly, explain your options clearly, and if we're the right fit to complete your build, we'll tell you exactly how we'd do it.