Annual turnover changes

Management of builder turnovers (NSW builder eligibilities only)

Annual turnover interpretation and utilisation

There will no longer be a renewal date for the annual turnover concerning Home Warranty in the state of NSW. Rest of the states will follow in due course.

Each job once registered for Home Warranty will remain on the builder’s utilisation of his annual turnover limit for 12 months and one day, thereafter the amount of the job was registered for will be reapplied to your annual turnover limit.

Simply, each job registered will remain on system for 12 months and then drop of at its anniversary, no longer will the renewal date represent the annual limit being refreshed.

Going forward Home Warranty Insurance/Domestic Building Insurance will operate on a 12 month rollover. 

The insurer has advised that it requires the turnover usage under builder eligibilities to be managed on a rolling 12-month basis. Currently, the annual turnover and utilisation amount automatically replenishes upon renewal of eligibility every 12 months, this is now longer the case in NSW. Dates when this will take effect in other states (Vic, SA and WA) will be notified with advance notice.

As this is an annual rolling turnover limit, the usage of a builder’s eligibility will alter as certificates age to beyond 12 months since they were issued. Once a certificate ages beyond this point, the contract value applying to that certificate will be replenished against the builder’s available turnover limit.

It is important to note that while these changes will not impact your ability to currently view each of your client’s turnovers and available limit in c.change, it will display the accurate available turnover based on the HWIF methodology.

QBE has adapted reporting to ensure your clients are not impacted when they require a certificate of insurance. To further assist understanding of when available turnover will replenish, the changes being implemented under point 2 above will enable you to identify when and how much turnover will replenish in the near future.

Under construction limits (NSW builder eligibilities only)

While the HWIF generally does not operate under construction turnover limits for NSW builder eligibilities, in very rare cases, a builder may be required by the HWIF to operate on that basis.

We will communicate directly with you if this turnover limit applies to your clients.