Home Building Compensation Fund (HBCF)

The Home Building Compensation Fund (HBCF) is managed by icare. It provides a safety net for home owners in NSW faced with incomplete and defective building work carried out by a builder or tradesperson.

Licensed contractors that take on residential work over $20,000 need insurance cover through HBCF. They must obtain this cover before starting any work or taking any money under the contract, including the deposit.

HBCF undertakes a risk assessment of builders and tradespeople to determine their eligibility to obtain insurance cover. A Certificate of Eligibility sets out how much work a contractor can take on.

Once a builder or tradesperson has eligibility, they can apply for a Certificate of Insurance for individual projects which they contract to do.