NSW Home Warranty
Update on NSW Home Warranty Insurance - 31/01/2012
NSW - Home Building Amendment Act 2011
On 19 October 2011, the NSW Parliament passed a package of reforms to the Home Building Act 1989 which includes changes to:
- Home warranty insurance
- Statutory warranty
- Contract requirements.
These reforms apply to all residential building work covered by home warranty insurance but do not apply to claims that have already been made (whether finalised or not), or to legal proceedings underway or finalised.
The changes will commence in two stages, the first took effect on 25 October 2011, while second will begin on 1 February 2012. Click for full update
Update on NSW Home Warranty Insurance - 12/01/2012
What is a speculative project?
Many licensed builders are undertaking speculative work whereby they construct homes on parcels of land they have purchased and sell them upon completion. A licensed builder wishing to carry out speculative work must own the block of land on which they propose to build on. The title to the land must note the builder as the registered proprietor only. Click here for full update
Insolvency/deregistration of your company will have significant consequences for builders seeking to obtain home warranty eligibility for future projects
Historically, when a building company has experienced financially difficulty, the common practice had been to liquidate and wind up the company. This enabled a builder to wind up their company that was in debt and essentially create a new business with which they could commence trade under. Click here for full update
Annual turnover changes
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. Click here for full update
Update on NSW Home Warranty Insurance - 3/10/2011
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: Click here for the full update
Update on NSW Home Warranty Insurance - 1/07/2010
MBA Insurance Services will be notifying their builders of
information and documentation required to be submitted to enable the
review to be undertaken sought by the Home Warranty Insurance Fund
(HWIF).
QBE, as the HWIF Agent will be conducting the review of
builder’s continued eligibility for home warranty insurance, this will
in future be carried out on a regular basis through their Periodic
Eligibility Reviews (PER).
This information is sought within 20
business days of notice of the intention to undertake the review and to
submit the required documentation.
These reviews are to assess a
builder’s current financial position against the HWIF’s underwriting
criteria to measure, identify and monitor its exposure to builder
insolvency risk and to any emerging risk. The HWIF’s underwriting
guidelines can be located at www.homewarranty.nsw.gov.au.
MBA
Insurance Services will specify the information/documentation that is
required in our communication to the builder, generally, the information
requested will be the same as that required for a new eligibility
application.
For further information please click here.
Update on NSW Home Warranty Insurance - 1/07/2010
We wish to advise that all eligible builders with MBAIS have now been transferred to the Self Insurance Corporation (SICorp) facility and it is business as usual.
Update on NSW Home Warranty Insurance - 9/06/2010
Yesterday the NSW Treasurer announced some major changes to the way in which Home Owners Warranty insurance will be arranged moving forward
From 1 July 2010, the NSW Government, through the Self Insurance Corporation, will become the sole underwriter of Home Owners Warranty insurance in NSW.
Whilst the Government will underwrite the risk, the administration of the product will be handled by two Insurance Agents, QBE and Calliden.
Fortunately for builders, MBAIS will remain a key distributor of this product, hence changes to the way in which this insurance is currently transacted will be minimal.
Builders who are currently eligible will be transitioned to the new Scheme under comparable conditions to what exists for them now.
Whilst Vero was not granted an Agency under the new arrangements, there will be a 3 month transition period (i.e. up to 30 September 2010) which will allow MBAIS to smoothly transfer any business that is currently with Vero, to one of the other Agents.
Members who are insured through MBAIS do not need to take any immediate action. We will be contacting you in the near future with details about your ongoing eligibility and premiums. You should continue to lodge your applications through MBAIS.
Members who are not insured through MBAIS are encouraged to contact us about arranging cover for you. MBAIS are experienced in all facets of construction and building insurance, and you can rely on us to provide the best assistance possible throughout this transition phase and beyond.
For Further Information, please call MBAIS on 1300 780 095 or (02) 8586 3519