1. What is HIA Home Warranty?

HIA Home Warranty provides insurance coverage for residential building projects, protecting homeowners against incomplete or defective work by builders. The premium is calculated as a percentage of the contract value.

2. How Does the Calculator Work?

The calculator uses the HIA Home Warranty formula:

Where:

• \( Percentage \) — Warranty percentage rate (%)
• \( Contract\ Value \) — Total value of the building contract (currency)

Explanation: The premium is calculated by multiplying the contract value by the applicable percentage rate, which is typically determined by the warranty provider based on the project type and risk assessment.

3. Importance of Premium Calculation

Details: Accurate premium calculation is essential for builders to properly budget for warranty costs and ensure compliance with regulatory requirements for home warranty insurance coverage.

4. Using the Calculator

Tips: Enter the warranty percentage rate and contract value. Both values must be positive numbers to calculate the premium amount.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical percentage rate for HIA home warranty?
A: Percentage rates vary by provider and project type, typically ranging from 0.5% to 2% of the contract value.

Q2: Is HIA home warranty mandatory?
A: In most jurisdictions, home warranty insurance is mandatory for residential building projects above a certain value threshold.

Q3: What does HIA home warranty cover?
A: Typically covers structural defects, incomplete work, and non-compliance with building standards for a specified period after completion.

Q4: How is the contract value determined?
A: The contract value is the total agreed price for the building work, including materials and labor, but excluding GST and other taxes.

Q5: Can the percentage rate vary during a project?
A: The rate is usually fixed at the start of the project, but may be adjusted if there are significant contract variations or changes in risk assessment.