Home Warranty Insurance in NSW
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 has either 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).
In November 2016, icare (Insurance & Care NSW) made an announcement outlining reforms to the Home Building Compensation Fund (HBCF) to ensure its financial sustainability and ability to protect homeowners now and into the future.
From 3 October 2017, registered builders in NSW seeking to purchase insurance from icare must select a licensed Distributor to manage their HBCF needs.
MBA Insurance Services (MBAIS) is one of only 24 brokers to have been granted a license to act as a Distributor of icare.
Visit our designated HBCF website hbcf.com.au for more information.
MBAIS has many years experience in dealing with the underwriters of Home Warranty Insurance in New South Wales and has a designated team that are well placed to assist both new and existing builders through the eligibility and review processes.
Providing protection for your valued customers.
When is Home Warranty Insurance compulsory?
Home Warranty Insurance is a statutory product, compulsory under relevant building legislation in most states for builders carrying out residential building work.
Insurance must be purchased when the value of the work being done is:
Cover only applies when a builder dies, disappears or becomes insolvent and is provided for outcomes relative to a specific dispute resolution process.