Owner-Builder Home Indemnity Insurance Inspection Reports

Owner-builders in Western Australia who sell within seven years of their building permit generally need home indemnity insurance in place before they sign a sale contract, and insurers usually ask for an independent defects inspection report before they will issue the policy. Inspector West prepares these reports across Perth, Rockingham, Mandurah and the Peel region.

Every inspection is completed by Brian Collins, a WA registered building contractor (BC13603) and building practitioner (BP13603) with more than 33 years of building experience.

Who this report is for

Owner-builders selling a home they built within the last seven years.
Owners who added an extension, second storey or granny flat as an owner-builder and are now selling.
Real estate agents and settlement agents helping an owner-builder client prepare a property for sale.
Home indemnity insurance brokers who need an inspection report for a client.

When home indemnity insurance is required in WA

Under the Home Building Contracts Act 1991 (WA), an owner-builder must not enter into a contract to sell the property within seven years of the date the building permit was granted unless a home indemnity insurance policy is in force for the work and the buyer has been given a certificate of insurance. The requirement applies to residential building work valued at more than $20,000, and selling without the required cover can lead to a fine of up to $10,000.

The policy covers the buyer, and later owners, for the rest of the seven-year period. Claims can generally only be made if the owner-builder dies, disappears or becomes insolvent. Associated work on its own, such as a swimming pool, carport, fence or pergola, does not require home indemnity insurance even when it is worth more than $20,000.

Arranging insurance takes time, so owner-builders are encouraged to organise the inspection before the property is listed for sale.

What is inspected

The inspection is a visual assessment of the owner-built work and the property, where safely accessible:

Site drainage, paving and ground levels around the building.
External walls, brickwork, render, cladding, windows and doors.
Roof coverings, flashings, gutters, downpipes and the roof space.
Internal walls, ceilings, floors, joinery and finishes.
Wet areas, including visible signs of waterproofing failure.
Subfloor areas where accessible.
Decks, pergolas, balconies and stairs forming part of the work.

Incomplete work and visible second-hand materials are recorded. Any material suspected of containing asbestos is noted for specialist assessment only. Inspector West does not test for or identify asbestos.

What the report includes

A photographic record of defects, incomplete work and items requiring attention.
A clear description of each finding, its location and its significance.
Notes on any areas that could not be inspected, and the reasons.
A summary suitable for providing to the insurer or broker.

Insurers generally exclude defects, incomplete work and second-hand materials noted in the report from cover, so many owner-builders choose to rectify listed items before sale. Reports for standard homes are photo-based and usually delivered on the same day.

Requirements differ between insurers, including how recent the report must be and who may prepare it. Owner-builders should confirm their insurer’s or broker’s requirements before booking, and the report can be arranged to suit.

Granny flats and extensions

Granny flats and extensions built by owner-builders are common across Perth and Peel. Since 2024, a compliant granny flat (ancillary dwelling) of up to 70 square metres can be exempt from planning approval, but a building permit is still required. If the owner-built work was valued at more than $20,000 and the property is sold within seven years of the permit, the home indemnity insurance requirement still applies. The inspection focuses on the owner-built structure and how it connects to the existing home.

Why Inspector West

Inspections are carried out by a WA registered building contractor (BC13603) and building practitioner (BP13603), registered since 2011, with more than 33 years of building experience.
Practical knowledge of construction methods and the defects most often found in owner-built work.
Clear photographic reports, usually delivered on the day of the inspection.
Sellers can combine the inspection with a pre-listing review. See Seller Building Inspections Mandurah.

Areas served and quotes

Owner-builder inspection reports are available across the Perth metropolitan area, from Joondalup to Mandurah and out to the hills, including Rockingham, Baldivis and Kwinana, and throughout Mandurah, Pinjarra and the Peel region. Regional areas, including Bunbury, are available by arrangement. See the Pinjarra and Bunbury pages for regional information.

A fixed quote is provided before work begins, based on the size of the home or extension and its location. Call 1300 080 554 or 0409 280 488, email brian@inspectorwest.com.au, or request a quote. It helps to have the building permit, approved plans and any certificates available at the inspection.

Owner-builder inspection FAQs

Do I need home indemnity insurance to sell my owner-built home?

If you sell within seven years of the date your building permit was granted, and the residential building work was valued at more than $20,000, home indemnity insurance must be in force and the buyer given a certificate of insurance before the sale contract is entered into.

Why does the insurer need an inspection report?

Insurers use the report to understand the condition of the owner-built work before issuing the policy. Defects, incomplete work and second-hand materials noted in the report are generally excluded from cover.

How old can the inspection report be?

Each insurer sets its own requirements, and many ask for a recent report. Check with your insurer or broker before booking so the inspection can be timed to suit your sale.

Does a granny flat or extension need home indemnity insurance?

If the granny flat or extension was built by an owner-builder, was valued at more than $20,000 and the property is sold within seven years of the building permit, insurance is generally required. Associated work on its own, such as a pool, carport or fence, does not require it.

What should I have ready for the inspection?

It helps to have the building permit, approved plans and any certificates you hold, such as termite treatment or compaction certificates, available on the day. Clear access to the roof space and subfloor is also helpful.

How much does an owner-builder inspection report cost?

A fixed quote is provided before work begins, based on the size of the home or extension and its location. Call 1300 080 554 to discuss your property.