1. What is NSW Home Owners Warranty?

The NSW Home Owners Warranty provides protection for homeowners in New South Wales against incomplete or defective building work. It is a mandatory insurance for residential building work over $20,000.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Percentage \) — The warranty percentage rate (%)
• \( ContractValue \) — The total value of the building contract ($)

Explanation: The premium is calculated by multiplying the contract value by the applicable percentage rate.

3. Importance of Warranty Premium Calculation

Details: Accurate premium calculation ensures proper insurance coverage for building projects, protects homeowners' investments, and complies with NSW building regulations.

4. Using the Calculator

Tips: Enter the percentage rate and contract value. Both values must be positive numbers. The calculator will compute the premium amount.

5. Frequently Asked Questions (FAQ)

Q1: When is home owners warranty required in NSW?
A: Warranty insurance is required for all residential building work valued over $20,000 in NSW.

Q2: What is the typical percentage rate for warranty insurance?
A: Rates vary depending on the contract value and project type. Consult with your insurer for current rates.

Q3: Who pays for the home owners warranty insurance?
A: The builder is responsible for obtaining and paying for the warranty insurance before starting work.

Q4: What does the warranty insurance cover?
A: It covers incomplete or defective work if the builder dies, disappears, or becomes insolvent.

Q5: How long does the warranty insurance last?
A: Coverage typically lasts for 6 years for structural defects and 2 years for non-structural defects.