In recent years, several Perth-based building companies have gone into administration or liquidation, particularly in the wake of COVID-related industry pressures. While this can be unsettling for homeowners, it also highlights the importance of having safeguards in place — particularly Home Indemnity Insurance (HII).
Whether you’re currently building, planning to build, or simply wanting to better understand the current building landscape, this article explains what HII is, how it protects you, and how Jubilee Home Builders can help if your project is affected.
What Is Home Indemnity Insurance?
Home Indemnity Insurance (HII) is a compulsory form of protection for homeowners in Western Australia. It’s designed to provide cover if your builder dies, disappears, or becomes insolvent.
In WA, HII is legally required for all residential building projects over $20,000, and it must be taken out by the builder on behalf of the owner before construction begins.
HII provides protection in the event of serious builder failure, including:
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- The cost to complete an unfinished home
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- Rectification of faulty or incomplete work
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- Reimbursement of lost deposits (up to $40,000)
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- Coverage of up to $200,000 in total
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- Structural warranty protection for six years after completion
Currently, QBE is the only insurer authorised to issue HII policies under WA’s government-mandated system.
Why Are Some Builders Going Bust?
The recent wave of builder insolvencies has been driven by a combination of:
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- Fixed-price contracts that couldn’t keep up with rising material and labour costs
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- Supply chain delays and unpredictable delivery times
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- Underquoting in an increasingly competitive market
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- Taking on too many projects without the resources to deliver them effectively
At Jubilee Home Builders, we’ve taken a very different approach.
As a specialised residential builder, we limit the number of projects we take on at any one time. This allows us to dedicate the right level of care and attention to each build. Our full team is actively involved throughout every project — from planning to completion — ensuring quality and communication are maintained every step of the way.
How to Spot the Warning Signs
Even if your current project seems stable, it’s worth keeping an eye out for signs that your builder may be facing trouble. Here are some red flags to be aware of:
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- Long periods of site inactivity
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- Repeated delays with little or no explanation
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- Difficulty reaching your builder or getting consistent updates
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- Trades or suppliers contacting you directly for unpaid invoices
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- Frequent changes in staff or subcontractors
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- Public announcements, news articles, or online reviews suggesting financial issues
What To Do If Your Builder Goes Bust
If your builder enters liquidation or administration, don’t panic — there is a clear process to follow:
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- Locate Your HII Certificate
– This should have been provided at the beginning of your project. It will list QBE as the insurer. - Contact QBE
– As the sole provider of HII in WA, QBE will guide you through the claims process. - Gather All Relevant Documentation
– Contracts, payment receipts, progress photos, communication records, and anything that shows the state of your build. - Request a Completion Quote
– Contact an experienced builder (like Jubilee Home Builders) to provide a detailed quote outlining the remaining work needed to complete your home. - Submit Your Claim
– Once QBE receives all documents and the completion quote, they will assess your claim and outline the next steps.
- Locate Your HII Certificate
How Jubilee Home Builders Can Support You
At Jubilee Home Builders, we understand how distressing it can be when a build is disrupted. That’s why we’ve made it part of our service offering to assist homeowners impacted by builder insolvencies.
We provide:
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- A detailed quote for the remaining work (suitable for submission with your HII claim)
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- Step-by-step guidance through the insurance process with QBE
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- Reassurance that your project is in experienced, reliable hands
Because we take on a limited number of jobs at any one time, we can step in with the capacity to deliver the attention your home needs. When you build with Jubilee, you work directly with our close-knit team — the same people who manage, oversee, and complete your home.
If you’ve been affected, send us your current plans, progress documentation, or site details, and we’ll help you take the next step forward.
Stay Informed. Stay Protected.
While builder collapses can be challenging, Home Indemnity Insurance is in place to protect you — and it does exactly that when activated properly.
If you’re starting your building journey, here’s how to make sure you’re protected:
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- Ensure your builder provides a valid HII certificate (from QBE) before construction begins
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- Work with a builder who takes on a manageable number of projects
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- Look for consistent communication and strong project oversight
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- Ask questions — a reputable builder will always be transparent
Need guidance or support?
Contact Jubilee Home Builders today — we’re here to help you move forward with confidence, care, and experience.
