Changes to Building Indemnity Insurance - South Australia 20/06/2017
Significant changes are coming to Building Indemnity Insurance in South Australia from 1 July 2017.
MBA Insurance Services is one of the few brokers to be approved as an Authorised Broker for Building Indemnity Insurance. We will be sending out correspondence to our builders with additional information on the upcoming changes.
What are the changes?
The State Government Financing Authority, SAFA, has made the following changes which come into effect from 1 July 2017:
- QBE will become the sole agent of Building Indemnity Insurance in South Australia.
- The number of brokers who directly access Building Indemnity Insurance through QBE will be limited to those brokers that meet SAFA’s new criteria.
- SAFA have removed the commission payable to brokers and as a result brokers will need to charge builders a fee for eligibility and distribution of Building Indemnity Insurance.
- The indemnity limit will increase from $80,000 to $150,000 for policies issued on or after 1 July 2017.
What to do if my Broker can no longer manage my Building Indemnity Insurance?
You will need to sign a Letter of Appointment specifically for your Building Indemnity Insurance to move to MBA Insurance Services. Alternatively, your current Broker can place Building Indemnity Insurance via MBA Insurance Services, however your broker may charge an additional fee, over and above our fee. We recommend confirming with your broker whether additional fees apply.
Should you select MBA Insurance Services to manage your Building Indemnity Insurance and you are currently with Calliden (RBUA) you can either;
- Move now and apply for a facility with QBE through their normal application process; or
- Move to QBE from 1 July.
Note under either option QBE will conduct a Review within three months.
If you have any queries about the upcoming changes, please contact MBA Insurance Services on 08 8461 8288 or firstname.lastname@example.org