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Changes to Home Warranty insurance


The NSW Government announces changes to Home Warranty insurance

Currently in NSW, the Government determines the policy terms of Home Warranty insurance, manages its administration and is the sole underwriter. This means when insurance claims arise, the NSW Government pays out the claim to the Home owner.

The NSW Government has recently announced changes to Home Warranty insurance under the Home Building Compensation Fund (HBCF).

What changes are occurring?

  • Home Warranty premiums will increase incrementally over the next two years and will be based on a builder risk assessment and the loss ratio of construction types, the first increase will come into effect on the 3rd of April 2017. As outlined in the icare communication letter a broker fee-for-services will be charged in addition to the base premium.
  • The NSW Government has indicated that they will establish a framework that will encourage and allow private insurers to re-enter the market.

Why are changes occurring?

A statement released by the NSW Government confirmed "a reform of the HBCF is necessary as it is not financially sustainable…the HBCF lost approximately $62 Million in 2013 and $33 million in 2014".1

How HIA Insurance Services (HIAIS) will support your business

Our primary objective is to continue to provide you with solutions to address your current and future challenges. We are also committed to putting the best interests of the building industry front of mind.

HIAIS will continue to provide your business with efficient and high level of service in managing the changes that will commence as of the 3rd of April 2017, as well as the following Broker services we provide:

  • Efficient 24 hour delivery of certificates*
  • Advocacy - we work for you in providing advice and we attend to appeals of the respective Underwriting Committees.
  • Eligibility submissions for new builders - we manage your Home Warranty submission application on your behalf to best achieve a speedy approval.

1. Reform of the Home Building Compensation Fund, Discussion Paper – December 2015.
* Provided you have an approved profile with Icare NSW Government.

If you would like to discuss the Home Warranty changes please call HIAIS on 1800 762 852.

Contact
1800 762 852