A Perth builder that started work on a house without acquiring mandatory home indemnity insurance has been fined $3500 and ordered to pay $736 in costs. 

In WA, a builder must take out a HII policy for home building work valued at more than $20,000 before accepting payment or starting work.

The cover protects owners against financial loss if the builder cannot complete or rectify work because of death, disappearance, insolvency or loss of registration on financial grounds.

Armadale Magistrates’ Court was told DBD Developments installed a concrete slab, footings and pre-lays for the client’s two-storey house in January 2022 but did not have HII in place until that July.

Building commissioner Saj Abdoolakhan said the homeowner made two progress payments without the protection.

“The builder was eligible for this insurance and should have obtained it before commencing work, rather than six months later,” he said.

“This conduct undermines the protections provided by WA’s home building contract laws and the overall integrity of the building approvals process.”