Builders Warranty Insurance NSW>>>
Builders Warranty Insurance – NSW
Builders Warranty also referred to as Domestic Builders Insurance protects the home owner if the Builder lose their deposit, don’t finish the job or it’s defective, and the builder dies, disappear or become bankrupt.
Home Warranty Insurance, or Home Building Compensation Fund (HBCF) as it is now referred to in NSW, covers the homeowner (and subsequent owners) where the contracted building work is incomplete or defective and the builder haseither died, disappeared, become insolvent during construction or has failed to respond to a rectification order within 30 days of it being issued. The cover lasts up to 6 years from completion of the domestic building work or termination of the domestic building contract (6 years for structural defects and 2 years for non-structural).
Cover only applies when a builder dies, disappears or becomes insolvent and is provided for outcomes relative to a specific dispute resolution process.
Home Building Compensation Fund
Major changes occurred in November 2016 to the Home Building compensation Fund (Formally known as Builders Warranty or Home Warranty) in New South Wales. We can still assist with your requirements regardless to these changes, we have extensive experience in the Warranty field to find the best option for you.
What’s included in the Policy:
- Non-completion – The policy for residential building work provides cover for a period of 12 months after the failure to commence or cessation of the work.
- Structural defects – The policies for residential building work and owner-builder work provide cover for loss or damage arising from a structural defect for a period of six years after the completion of the work.
- Other loss and damage
The policies for residential building work and owner-builder work provide cover for loss or damage arising from other than a structural defect (e.g. a non structural defect) for a period of two years after the completion of the work.
For the purposes of determining the period of cover provided by an insurance policy for residential building work, completion of work occurs on the date that the work is complete within the meaning of the contract under which the work was done.
If the contract does not provide for when the work is complete (or there is no contract), the completion of the work occurs on practical completion. This is when the work is completed except for any omissions or defects that do not prevent the work from being reasonably capable of being used for its intended purpose. It is to be presumed (unless an earlier date for practical completion can be established) that practical completion of the residential building work occurred on the earliest of whichever of the following dates can be established for the work:
- The date on which the builder handed over possession of the work to the homeowner;
- The date on which the builder last attended the site to carry out work (other than work to remedy any defect that does not affect practical completion); or
- The date of issue of an occupation certificate for the work under the Environmental Planning and Assessment Act 1979.
Licenced builders will need to demonstrate financial robustness in the following areas:
Why Choose BuildSafe?
Obtaining Home Warranty Insurance is a straightforward process – just that many Insurance companies make it hard for the Builder. Not so at BuildSafe Insurance Brokers. We’ll help and get our hands dirty.
Got a Question about Builder Home Warranty Insurance/ Domestic Building Insurance? We’ve got the Answer!
Builder Eligibility conditions take account of the following major criteria:
- Builder’s capabilities;
- Builder’s history;
- Builder’s financial backing; and
- The ability to obtain restitution from or on behalf of the builder, or directors or related entities or third party-related indemnifiers should there be a claim.
All builder Eligibilities have an appropriate Eligibility Profile including:
- ‘Annual turnover limit’; and
- Individual job type contract limits.
Home Warranty Insurance is a statutory product, compulsory under relevant building legislation in most states for builders carrying out residential building work.
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