Certificate of Eligibility vs Certificate of Insurance: The Difference Homeowners Need to Know

What eligibility means

Before a builder can obtain HBCF cover for individual projects, icare assesses the business and sets eligibility conditions. A Certificate of Eligibility may state the type, value or volume of work the contractor is permitted to insure. It is part of the insurer's risk-management process for the building business.

Eligibility can therefore be relevant when selecting a contractor, but it remains a business-level permission. It does not identify the homeowner, property, contract or specific building job, and it is not the document the owner relies on for project protection.

What the project certificate proves

For each non-exempt project requiring HBCF cover, the eligible contractor must apply for a project-specific Certificate of Insurance. That certificate should identify the insured contractor, property and other project particulars. It must be supplied before any deposit or other payment is taken and before work begins.

The homeowner should retain the actual certificate as part of the permanent property records. A broker's email saying an application has been submitted, an insurance premium line in the contract or a copy of the builder's eligibility approval is not a substitute.

Why the confusion is dangerous

A contractor can be eligible but fail to obtain cover for a particular job. Eligibility may also contain limits that prevent the proposed contract from being insured without further approval. If the owner relies on eligibility alone and later discovers that no project certificate exists, the financial consequences can be severe.

The reverse is also important: a properly issued project certificate is not a quality endorsement. It does not confirm that the plans are complete, the contract price is adequate, the builder is financially secure for the life of the project or the work will comply with every requirement.

A simple verification sequence

Ask for the complete Certificate of Insurance, not a cropped screenshot. Check the contractor's exact legal name and licence, the site address, certificate number and issue date. Use HBC Check to confirm that the record exists and corresponds with the contract. Resolve any mismatch in writing before payment.

Keep both the certificate and the contract version to which it relates. If the project is substantially changed, staged or transferred to a replacement builder, ask whether additional or new cover is required rather than assuming the original certificate follows every later arrangement.

Practical takeaway: Eligibility is permission for a builder to seek cover. The Certificate of Insurance is the project document a homeowner must verify and retain.

How ARK Houses can help

ARK Houses treats eligibility and project insurance as separate controls. Before a replacement contract starts, we confirm the project-specific certificate required for our own scope while preserving the original certificate as part of the first-builder claim file.

Discuss Your HBCF Documentation