Understanding QBCC Home Warranty Premiums
Learn how QBCC calculates home warranty insurance premiums and what factors affect your costs.
How QBCC Calculates Home Warranty Premiums
QBCC home warranty insurance premiums are calculated based on the contract value of your building work. The premium rates are set by the Queensland Government and are reviewed periodically.
The current premium structure is tiered, with different rates applying to different value ranges of building work:
- For work valued up to $20,000, there is a flat premium rate
- For work valued between $20,001 and $200,000, the premium is calculated as a percentage of the contract value
- For work valued over $200,000, there are additional tiers with reducing percentage rates
Factors That Affect Your Premium
1. Contract Value
The total contract value is the primary factor in determining your premium. This includes all building work, materials, and GST.
2. Type of Construction
Different types of construction work may have different premium rates:
- New home construction
- Renovations and extensions
- Swimming pools
- Transportable homes
3. Builder Status
In some cases, the premium may be affected by the builder's history with QBCC, including their claims history and financial status.
Premium Calculation Example
For a new home with a contract value of $350,000:
- Base premium calculation based on the tiered structure
- Application of any applicable discounts or loadings
- Addition of stamp duty and GST
The final premium would typically be between 0.5% and 1.5% of the contract value, depending on the specific circumstances.
When to Pay the Premium
The insurance premium must be paid before building work commences. The builder is responsible for arranging the insurance and paying the premium, but this cost is typically passed on to the homeowner as part of the building contract.
For more detailed information on premium calculations, you can use our QBCC Premium Calculator or contact QBCC directly.