Does a Replacement Builder Need a New WA HII Certificate?

Yes—for residential building work valued over $20,000, the WA Government’s “Home indemnity insurance – a reminder about your obligations”, published 20 May 2025, says a proposed new builder must obtain a home indemnity insurance (HII) certificate when the builder changes during construction and before completion on work for which a building permit was granted. The certificate must be for the proposed building work or the stage of building work required, and the new builder must give the owner a copy. Giving the permit authority a copy is also advisable (figures checked 1 October 2026).

What triggers a new certificate after the builder changes?

The replacement-builder requirement applies when the following circumstances coincide:

The broader WA requirement also says a builder must obtain the certificate before claiming any payment from the owner or commencing work under the contract. The outgoing builder’s certificate should not be treated as satisfying the proposed new builder’s obligation to obtain cover for the proposed work.

Must the certificate cover all remaining work?

Not necessarily. The WA guidance says the certificate must be for the proposed building work or the stage of building work required. The guidance does not explain how stages must be divided, so the certificate should correspond to the work the replacement builder will actually undertake.

Owners should ask the new builder to clarify the certificate scope if the handover point or remaining stages are unclear. Building and Energy can also provide general information about HII.

What should the owner receive and check?

The owner should receive a copy of the HII certificate obtained by the proposed new builder. A useful document check includes:

• confirming it is an HII certificate of insurance, rather than the outgoing builder’s certificate;
• checking that it relates to the proposed building work or required stage;
• checking that the certificate is watermarked;
• using QBE Insurance’s Builders Warranty Insurance Certificate Register to confirm that the certificate was issued by QBE and compare its details with QBE’s records; and
• checking that the builder has not supplied an HII eligibility certificate or a construction/public liability insurance certificate instead.

During the building-approval process, the WA Government says the permit authority must ensure that the HII certificate is watermarked, was issued by QBE, and matches QBE’s register. These checks confirm the document, but the owner should still read the policy’s Product Disclosure Statement (PDS) for the applicable terms.

Is a permit authority copy mandatory for the replacement builder?

The WA Government’s specific change-of-builder guidance says the new builder must give the owner a copy and that giving the permit authority a copy is advisable.

That should be distinguished from the general building-approval process for residential building work valued over $20,000, where the builder must provide copies to the owner and permit authority. The replacement-builder guidance does not set out a separate permit transfer process, so owners should check the WA Government page and confirm with the permit authority how it wants the replacement certificate handled.

What does HII protect against?

HII protects owners against the risk of losing a deposit or suffering other financial loss if the builder cannot complete the work or meet a valid claim for faulty or unsatisfactory building work because a relevant circumstance exists.

Relevant circumstances can include an individual builder dying, disappearing or becoming insolvent, or a corporate builder ceasing to exist or becoming insolvent. They can also include cancellation of the builder’s registration by the State Administrative Tribunal or non-renewal by the Building Services Board because the builder failed to meet prescribed financial requirements.

Who can help?

Building and Energy can advise on approved HII providers. This article is general information, not financial or legal advice. Check the linked WA Government regulator page for the current process and the policy’s PDS before relying on the certificate or cover.

Sources

• Home indemnity insurance – a reminder about your obligations — WA Government

FAQ

Does an existing building permit remove the need for HII when the builder changes?

No. If the builder changes during construction and before completion on permitted residential building work valued over $20,000, the proposed new builder must obtain an HII certificate for the proposed work or required stage.

Can the replacement builder rely on the outgoing builder’s certificate?

No. The WA guidance places the requirement to obtain the certificate on the proposed new builder. The owner should receive a copy of that new builder’s certificate.

Does the certificate have to cover the whole remaining project?

The guidance says it must be for the proposed building work or the stage of building work required. If the remaining work is divided into stages, confirm that the certificate matches the stage the new builder will perform.

Must the replacement builder give the permit authority a copy?

The change-of-builder guidance says providing the permit authority with a copy is advisable. By comparison, giving the owner a copy is expressly required.