Home warranty - NSW

hello everyone, I'm still in the process of going through quotes for my build. We are doing a first floor addition and renovation and the build cost is approx $300k. I have been told by some builders that the home warranty is closer to $10k. Is this correct? how do I know if this is correct?

Thank you.

There are a few on line calculators for home warranty insurance.
I used one and while not an exact figure, it was within 5%, I believe it depends on the builder, the broker etc.
I’m not sure if a Reno would cost more than a new build though..

See - https://www.icare.nsw.gov.au/builders-and-homeowners/builders-and-distributors/premiums/premium-calculator#gref

This provides the "base rate" - Low risk builders will get a discount of up to 30%, high-risk builders will pay up to 30% more

Thanks guys, so if I calculate this correctly base rate shows as $2.5k is that correct based on a $300k reno? so this is what the builder will be including as home warranty insurance cost? I'm just confused as some builders are quoting me as high as $10k and some are only $3-4k.

Cheers.

Each individual builder will have a different price, dependent on the size of their company, broker fees, and risk.
Id be seriously asking the builder who said 10k why? they may be classified as high risk so there premiums are higher.

Thank you for the reply everyone. I have had an update from the builder. The response is given my work is more of a major renovation to the existing house (adding a first floor) building insurance is to cover any damage etc for the existing house. Where as home warranty is for the structural warranty 7 years post build. Is this correct?

Structural Warranty is 6 Years now and not 7. But yes the cost of cover is depended on the building company, risk scale.

Goodluck

Hi saw your post. I was surprised to read you are doing a first floor addition and renovation for $300k. We have a small house but none of the quotes have been under $500k. Would you mind sharing how big your project is and how you've approach builders?Did you get plans done first? Thanks

Hi rebe3719, our build is not massive. Current house is a brick/veneer and we are adding a first floor including 2brms/lounge/bathroom about 74sqms. In terms of ground floor, we are renovating kitchen/bathroom/laundry/flooring. Additionally we are also doing ducted air to the whole house. Yes, we got our plans done through a drafting person who was really helpful in driving a design to cater our budget. Once the DA was approved, we then approached builders to get separate quotes. Some were hugely expensive but 80% would be about the same mark. Price also depends on what inclusions you want to add. In our case we did add a bit but all up is 300k for the project. I assume you need to allow at least 10% buffer in case for any unforeseen stuff. Feel free to PM me if you need any help. Also I should mention we are in NSW.