Are building defects covered by insurance after renovation? (Bathroom | Building & Approvals)

Published on 17 November 2025 at 14:53

This is a common question for Sydney homeowners who have invested in bathroom renovations, and the answer depends on the type of defect, the insurance policy, and the warranties provided by the contractor. Understanding your rights and coverage is essential to protect your investment and ensure peace of mind after completing a renovation.

In Australia, most reputable builders and licensed contractors provide statutory warranties that cover certain defects for a period after the work is completed. For residential bathroom renovations in New South Wales, this typically includes major defects, such as structural issues, water penetration due to faulty waterproofing, or poor workmanship that affects the durability of the bathroom. These warranties are part of the Home Building Act 1989 (NSW) and are legally binding when using licensed contractors.

Insurance coverage for defects can also come in the form of Home Warranty Insurance, which is mandatory for residential building projects over a certain value in NSW. This insurance protects homeowners if the builder cannot fix the defects due to insolvency, disappearance, or licence issues. However, it’s important to note that Home Warranty Insurance does not cover normal wear and tear, minor cosmetic issues, or damage caused by misuse, neglect, or changes made after the renovation.

When it comes to bathroom renovations, common defects covered may include leaks caused by faulty waterproofing, incorrect installation of cabinetry or fixtures, plumbing faults directly related to the renovation work, and tile or grout failure due to poor workmanship. To ensure your bathroom is protected, it’s crucial to use a licensed contractor who provides written warranties and holds the necessary insurances. Keep all contracts, invoices, and communications as proof of work and warranty coverage.

Homeowners should also check the details of their home insurance policy, as some policies may provide limited coverage for damage resulting from defects or faulty work, while others do not. Engaging licensed professionals who follow Australian Standards and building codes significantly reduces the likelihood of defects and maximizes your ability to claim if an issue arises.

In summary, building defects after a bathroom renovation can be covered by statutory warranties, Home Warranty Insurance, and sometimes home insurance, but coverage depends on the type of defect, the contractor’s licence, and compliance with Australian building standards. Always work with licensed, experienced professionals to ensure your bathroom renovation is safe, durable, and fully protected.

Visit www.mb9.com.au to find out more information about kitchen, bathroom and laundry room renovation services from MB9 Australia Pty Ltd.

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