Leaking or cracked new pool? Home warranty insurance and your options

Queensland home warranty insurance covers a new pool built by a licensed contractor for jobs over $3,300. But for pools the cover is narrow. It pays to fix structural defects only: a defect that lets water escape through the shell of the pool, or one that affects the health or safety of people using it. It doesn’t cover cosmetic or other non-structural problems in a pool.

Is my new pool covered by home warranty insurance?

Yes, if:

• the pool was built or installed by a licensed contractor
• the job was worth more than $3,300, including labour, materials and GST
• the pool is at a home, not a business

Your builder must pay the premium to QBCC within 10 business days of signing the contract, and before work starts. The premium is usually part of the deposit. Ask the builder for proof, or search QBCC’s insurance records for your property.

Not covered at all: renovating or repairing an existing pool, portable spas and anything else that isn’t fixed, owner-builder work, and work by an unlicensed person.

What does the insurance cover for a pool?

QBCC’s product disclosure says it will pay to fix “limited structural defects” in building or installing a pool. A structural defect in a pool is:

• a defect that lets water escape through the shell, such as a crack that leaks
• a defect that affects the health or safety of people using the pool

The insurance also covers you if the builder doesn’t finish the job, for example because they went broke. That applies to fixed-price contracts.

What isn’t covered?

For pools, QBCC lists no cover for:

• non-structural defects, such as a stained or rough interior finish that doesn’t leak
• surfacing outside the coping
• other work that goes with the pool, such as paving, slides and diving boards
• steps that aren’t fixed

Other items in the same job are excluded from defect cover too, including earthmoving and excavating, fences and landscaping, and electrical appliances. Because electrical appliances are excluded, keep the manufacturer’s warranty paperwork for the pump, heater and lights.

Fences, paving and landscaping in a pool contract are covered if the builder doesn’t finish them, but not for defects.

How long do I have to claim?

Structural defects: you are covered for 6 years and 6 months from when the cover started. You must lodge your claim within 3 months of noticing the problem. Don’t wait to see if a leak gets worse.

Unfinished work: the contract must end within 2 years of work starting, and you must claim within 3 months of the contract ending.

My pool is leaking. What should I do?

1. Record it. Take photos and note how much the water level drops each day. Turn off any auto top-up so you can see the real loss.
2. Tell the builder in writing. List each problem and give a reasonable time to fix it. QBCC says 14 days may be reasonable for some defects, and longer for others.
3. Let them back to fix it. If you unreasonably refuse the builder access, you can lose your cover.
4. If they don’t fix it, complain to QBCC. Lodge a defective work complaint. QBCC can direct the builder to fix it, and if they can’t or won’t, your home warranty claim starts from that complaint.

If the 3 month time limit is close, lodge with QBCC anyway, even if the time you gave the builder hasn’t run out yet. See defective work: how to complain to QBCC.

What can stop a claim being paid?

QBCC’s product disclosure lists things that cancel or cut your cover. For a pool owner, the main ones are:

• fixing or demolishing the defect yourself before QBCC approves it in writing
• signing a release that lets the builder off the hook
• a defect you knew about, or should have known about, before the work was finished. Raise problems with the builder before the final payment
• defects caused by poor maintenance, wear and tear, earthquake, erosion, flood or landslip, or accidental damage
• paying more than the legal deposit, or paying ahead of the payment schedule

That last one matters if the builder goes broke. See hiring a pool builder for the deposit limits.

What about my house insurance?

Home warranty insurance doesn’t replace your house and contents policy. QBCC suggests you check your new pool is covered by your own insurer, and increase your cover if you need to.