Home Warranty - Non Reviewed Small Builder - NSW

Your business may qualify as a Non Reviewed Small Builder, which may avoid the process of Home Warranty eligibility review.

If you are not aware, SICorp (Self Insurance Corporation being part of the NSW State Government) has taken control of the Home Owners Warranty in this state. This became effective 1st July 2010 where SICorp became the sole underwriter of Home Owners Warranty insurance in NSW. 

QBE Insurance who acts as an Agent on behalf of SICorp and under instructions from SICorp is conducting Periodic Eligibility Reviews of builder’s continued eligibility for home warranty insurance.

In their review process QBE has identified your business that may qualify as a Non Reviewed Small Builder.

What this means is, as a Non Reviewed Small Builder you are not required to undergo a Periodic Eligibility Review. This is of course subject to acceptance of the criteria needed to be further met as a Non Revised Small Builder. 

The conditions for a builder to fall in this category are as follows: 

  • has a total business turnover (including group activity) of $1 million or less; and 
  • has Eligibility within the following limits: 
    • New single dwelling - $300,000 or less
    • Alterations and additions (i.e. structural work) - $100,000 or less
    • Renovations (i.e. non-structural work) - $30,000 or less
  • has been contracting residential building work for over 12 months
  • does not have an adverse trading history (e.g. previous insolvencies, past home warranty claims, outstanding Consumer, Trader and Tenancy Tribunal orders etc.) - including key managers; and
  • has not sought Eligibility to undertake the construction of new multi-dwelling projects (including duplexes, town houses etc.) or the construction of swimming pools

QBE Insurance will continue to undertake checks on licensing and credit defaults, at least once every three (3) years. If they identify any emerging risk issues then an immediate Special Eligibility Review may be triggered where updated financials and supporting documents is required.

MBA Insurance Services in association with Master Builders Association of NSW urge you to consider this as step towards easing the burden required for your eligibility. Only if the limits advised above suit your business needs going forward.

If at any time a project arises that exceeds any of these limits, then a Special Eligibility Review will be required with all the required supporting documentation to support the increase you are seeking.

QBE Insurance will specify the information/documentation that is required through MBA Insurance Services (as your representative broker for Home Warranty) and liaise with you to arrange for this information to be provided. Generally, the information requested will be the same as that required for a new Eligibility application and is set out in the Fact Sheet 10 – Eligibility Reviews found on the following web site: click here

If you wish to accept your business to move across to a Non Reviewed Small Builder and apply the abovementioned limits as outlined, please sign the foot of this letter as your acknowledgement and return to MBA Insurance Services at your earliest convenience.

If you have any questions regarding any of this matter, please do not hesitate to contact the MBA Insurance Services Warranty Team on either of the following telephone no’s 03 9411 4555 or 02 8586 3501.

Jim Goranitis

National Manager Home Warranty