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NSW HWI Premium Formula:
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The NSW HWI (Home Warranty Insurance) Premium Calculation determines the insurance cost for residential building work in New South Wales. It's calculated as a percentage of the contract value, providing protection for homeowners against incomplete or defective work.
The calculator uses the NSW HWI premium formula:
Where:
Explanation: The premium is calculated by multiplying the contract value by the applicable percentage rate, which varies based on the type and value of construction work.
Details: Accurate premium calculation is essential for builders and contractors to properly price their services and comply with NSW home warranty insurance requirements, which are mandatory for residential building work over $20,000.
Tips: Enter the percentage rate and contract value in the appropriate fields. Both values must be positive numbers. The calculator will automatically compute the premium amount.
Q1: What is the minimum contract value requiring HWI in NSW?
A: Home warranty insurance is required for residential building work valued over $20,000 in New South Wales.
Q2: How is the percentage rate determined?
A: The percentage rate varies based on the type of work, contract value, and the insurance provider's pricing structure.
Q3: Who pays for the home warranty insurance premium?
A: Typically, the builder or contractor includes the cost of the insurance premium in the contract price and is responsible for obtaining the insurance.
Q4: What does HWI cover?
A: HWI covers homeowners for loss if the builder cannot complete the work or fix defects due to insolvency, death, disappearance, or license suspension.
Q5: How long does HWI coverage last?
A: Coverage periods vary but typically provide protection for 6 years for structural defects and 2 years for non-structural defects from completion of work.