What are mandated insurance?

Under the Building Act 1993, your builder and tradespeople must carry insurance that protects against structural defects, legal liability and injury. These insurance types vary from state to state, and it always pays to actually read the policy.

Many builders are understandably very upset at what they see as worthless and costly insurances, and many government mandated Home Owners Warranty insurances are practically worthless to you the home owner as you have to prove the builder has gone bankrupt (which is at least 12 months in the making) or that they have died (and have you ever tried to get a death certificate for your builder?).

Either way, everyone points to everyone else and your house or renovation sits by deteriorating while you continue to make your repayments.
Always consider taking out your own insurance. It doesn't cost much.