Builders undertaking certain residential construction works in NSW will be exempt from taking out compulsory Home Building Compensation (HBC) insurance following recent law changes. 

The State Insurance Regulatory Authority (SIRA) says the exemptions will apply to building works done on behalf of some charitable housing providers such as some community housing providers, specialist disability accommodation providers, or Local Aboriginal Land Councils. 

Exemptions will also apply to work on behalf of a developer that is a council and some build-to-rent schemes. 

Under NSW laws builders are required to take out HBC insurance for residential building work for each project over $20,000 before requiring or accepting a deposit or commencing work unless exempted. 

“Recent changes to home building laws mean that builders and some housing providers can now agree to contract out of home building compensation insurance requirements for certain residential building work,” SIRA says. 

“There are requirements that the contract must reflect for these exemptions to apply.” 

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