GLOSSARY TERM  
  Home warranty insurance  
 
  DESCRIPTION  
  Insurance required under the Home Building Act 1989 (NSW) in relation to Residential Building Work that must cover a person on whose behalf the work is being done against the risk of loss resulting from non-completion of the work because of the insolvency, death or disappearance of the contractor. It must also cover, amongst other things, a person on whose behalf the work is being done and the person's successors in title against the risk of being unable, because of the insolvency, death or disappearance of the contractor:

(a) to recover compensation from the contractor for a breach of a statutory warranty in respect of the work; or

(b) to have the contractor rectify any such breach.