In all states and territories within Australia except Queensland, you can get “Builders Warranty Insurance”.
This is insurance that “is acquired by the builder and issued to the homeowner to protect them against loss due to non-completion, defects and breach of statutory warranties by the builder. It is legally required and is only triggered if a builder dies, disappears or becomes insolvent before completing the home or fixing the defects.”
This insurance provides cover to the homeowner for up to seven years after the home is completed.
In Qld the situation is different. Under the PAMDA Act (Property and Motor Dealing Act) it has to be noted on the contract of purchase that the property was built or renovated under an owner builder.
If you sell your property within six years of the completion of the owner builder work you must provide the prospective purchaser a written notice with the warning:
Warning – The building work to which this notice relates is not covered by insurance under the “Queensland Building Services Authority Act 1991”.
There is more information on this here.
The other significant feature of being an Owner Builder in Queensland is that you can only receive an Owner Builder licence every six years, as opposed to every 3 years in other states.