Changes to Home Warranty NSW - effective 4th August, 2015 29/05/2015
On the 4th August 2015, the Home Building Compensation Fund (HBCF) framework will change, placing more onus on builders when finalising contracts.
New Eligibility Limits
The Rolling Annual eligibility limit that currently sees projects ‘rolling off’ 12 months after they are registered for Home Warranty, will be replaced with eligibility now based on Open Job and Contract Value limits. New eligibility limits are being issued to each builder
The new limits will be based on the number of jobs and total value of projects under construction. During this changeover, all of your existing jobs that will not be completed by 4 August 2015, will remain ‘open’ within your Facility, until you supply us with a project completion certificate.
We will be supplying each of our builders with more details in relation to their new individual limit within the next month.
New Project Completion Process
From 4 August 2015, you will be required to provide a short declaration of practical completion for each project registered, confirming the following as a minimum:
- Project has reached practical completion
- Updated property address
- Home owners details
This can be done simply by emailing our office with the declaration form. Once you have made your declaration, the job and contract value will be added back to your open eligibility limit. At the same time, the home owner will be advised that the HBCF policy has commenced.
Get Expert Advice
HBCF are now restricting the number of insurance brokers who can distribute this product on their behalf, given the complex nature and specialised knowledge required to manage your ongoing Facility. If your Eligibility Facility isn’t currently held with MBAIS, you should be contacting our office to arrange for this change.
Further information and updates will be made available through our website.
If you would like to discuss any of these changes, please contact us on (02) 8586 3555 (Sydney) or (02) 4953 9400 (Newcastle).