Commonly asked questions

Builders warranty insurance

• How long does my job specific home warranty application take to get processed?
• How long will my Builder Profile Change take to be processed?
• How do I cancel or amend a home warranty insurance certificate that has already been issued?
  
• How can I increase my home warranty insurance limits?
• What sort of asset base is expected when I am applying for home warranty insurance eligibility?
• Why have I been asked for a financial assessment?
• What is a speculative home?

General construction insurance

• How do I renew my Commercial Building Licence?
• Why do I need to complete an Actual Turnover Declaration?
• What is my period of insurance?
• What is the estimated turnover based on?
• For the Builders Indemnity policy, what is the definition of structural turnover?

 

Q: How long does my job specific home warranty application take to get processed?

Generally, your job specific application will take between 24 to 48 hours from receipt to process. To ensure that we can process your application in a timely manner, please complete all the relevant questions on the application form.  All the details that we require should be contained in your contract with your client.

Q: How long will my Builder Profile Change take to be processed?

From receipt of all the requested documentation, your builder profile change will take approximately 20 days to process.  Please include as much of the information requested on the relevant checklist as possible.

Q: How do I cancel or amend a home warranty insurance certificate that has already been issued?

The documentation that we require to cancel or amend a home warranty certificate will depend on which insurer has issued the certificate. If you need to cancel or make a variation to a certificate, please download a Certificate Cancellation/Variation Request Form.

Q: How can I increase my home warranty insurance limits?

Each insurer has an application form to allow you to request a variation to your existing eligibility profile.

We recommend you talk to one of our experts who can advise you about the insurer requirements for changes to your eligibility.

Your choice of forms to request a change of your warranty profile:

Profile change

QBE

Q: What sort of asset base is expected when I am applying for home warranty insurance eligibility?

This will be dependant on which way you are structuring your business and the individual insurer’s requirements, but as a general rule your net tangible worth should be approximately $50,000 or 10% of the yearly turnover limit that you are requesting.

Q: Why have I been asked for a financial assessment?

There are many different reasons that could instigate a financial review.  These include:

• You have exceeded your yearly turnover limit
• You have exceeded your individual contract limit
• The insurer has requested the review as part of their regular review process

If you are unsure why you have been requested to undergo a financial assessment, please contact your relevant branch to discuss.

Q: What is a speculative home?

A speculative home is only recognised as such when the owner of the land on title is exactly the same as the name of the building entity.  Where this is not the case, a domestic/residential contract should be entered into.

Q: How do I renew my Commercial Building Licence?

Once the insured has paid for their Builders indemnity Insurance, they will receive back from our office a stamped paid copy of the invoice and coverage summary which then needs to be forwarded to the Building Practitioners Board for licence renewal

Q: Why do I need to complete an Actual Turnover Declaration?

The annual Construction Works and Public Liability policy is set up with an estimated turnover.  At the end of the policy period we may need to make an adjustment on this turnover figure if the estimated turnover is not reached or alternatively if it is exceeded.  Another reason for the actual turnover declaration is that it is a requirement of the insurer (and government legislation) to be informed of the postcode and the contract value of any works that are undertaken so that the correct terrorism premium be charged.

Q: What is my period of insurance?

A lot of our clients become confused with their period of insurance.  The period of insurance is the dates the policy is to run between.  It is not, as most people think, set for a financial year.  For example, 12 April 2006 to 12 April 2007

Q: What is the estimated turnover based on?

As per the policy wording, the definition of turnover is as follows: the gross amount expended on labour, materials, goods, services and subcontracts in all phases of building and construction works in connection with all insured projects under this policy including those declared under the "Run-off provision" for the Policy

Q: For the Builders Indemnity policy, what is the definition of structural turnover?

The definition of structural turnover for the Builders Indemnity policy is anything that is integral for the building to stand up.  This will include foundations, columns, beams, floor slabs, retaining walls, external load bearing wall, portable frame, structural timber framing, trusses, load bearing lift shafts and roof framing.

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