Builder’s warranty insurance provides cover for loss or damage to homeowners or subsequent homeowners if the domestic building work is defective or incomplete and only if the builder has disappeared, died or become insolvent or for the insurance certificates that were issued after 1st July 2015, the builder has failed to comply with a Tribunal or Court Order.
The insurance cover depends on whether loss or damage is arising from non-structural defects or causes other than non-structural defects.
1. Non-Structural Defects: 2 years after the work is completed or the date the building contract is terminated, whichever is the earlier.
2. Other Causes (Structural Defects): 6 years after the work is completed or the date the building contract is terminated, whichever is the earlier.
1. For Certificates issued on or after 1 July 2014 – The insurance company will not pay more than $300,000 in total for all claims made under this policy for each home.
2. For Certificates issued on or before 30 June 2014 – The insurance company will not pay more than $200,000 in total for all claims made under this policy for each home.
Yes, you have to pay the following amounts for each claim under the policy:
1. Any amount for claims under $500 made between 3 to 12 months after completion of the work
2. The first $500 for claims made between 1 to 3 years after completion of the work
3. The first $750 for claims made between 3 to 5 years after completion of the work
4. The first $1000 for claims made later than 5 years after completion of the work
Get in touch with the expert brokers at FD Beck Insurance today and make sure you’re covered for all the right things.
Assessment considers different risks such as the risk that the builder becomes insolvent or disappears and the risk that the builder may undertake some domestic building works which are defective or might not be completed.
The assessment of the builder’s eligibility will include reviewing not only the builder’s but also its directors’ and/or partners’ previous building performance and their capabilities regarding the type and quantity of the projects they are willing to undertake and their technical and management skills.
The assessment also consists of reviewing builder’s business history and recent financial reports. The business’s key financial indicators should demonstrate solvency and ongoing financial viability.
The financial assessment process may include (but is not limited to) the following:
If the alteration works include any of the items listed in the Structural column of the table below or if the alteration includes both Structural and Non-Structural items, it should be classified as structural. In all other cases the alteration works should be classified as Non-Structural.
Development of 3 or more dwellings on one site where common works such as construction of a road, adjoining fire rated walls or common driveway are required is considered to be Multiple Building Works. There are three scenarios associated with Multiple Building Works as explained below. You should provide the required documents for review before any warranty certificates can be issued for Multiple Building Works;
There is Contract for Common Property Works with a Body Corporate
One Certificate is issued for whole contract. The required documents are as follow:
– A completed and signed Multi-unit application form
– A copy of the executed Building Contract
A scope of works and any relevant plans/specifications (confirming common property works)