The WA Building Commission has announced increased builders’ warranty premiums for large builders.

Building Commissioner Peter Gow says the state-run home indemnity insurance scheme would be unsustainable without the rise.

The changes, with large-volume and multi-unit project builders paying an increased premium from October 2, aim to stop taxpayers footing the bill for recent builder failures.

Small to medium-volume builders will be exempt from the increases, unless they are involved in multi-unit projects.

The commission says premiums paid, and any increase, will vary among individual builders and depend on the degree of risk and/or exposure they represent to the state.

Builders must obtain home indemnity insurance for residential building work worth more than $20,000 in WA.

It protects owners against financial loss if a builder cannot complete work or meet a valid claim for faulty or unsatisfactory work due to death, disappearance or insolvency.

“Home indemnity insurance provides crucial protection for West Australians building or buying a new home from unforeseen financial losses,” Mr Gow said.

“The scheme promotes consumer confidence in the home building industry.

“These changes better align risks and premiums, while supporting fair and reasonable premiums across the industry.”