Home Warranty Insurance for Builders: What’s new with this warranty insurance?
The Home Building Compensation Fund, or HBCF, was formerly known as the Home Warranty Insurance Scheme. When did it change? The name changed on the 15 day of January 2015. It’s important that Sydney builders understand this change in name for home warranty insurance for builders as it does affect them. The concept is designed for homeowners who take on residential construction projects in NSW when they are paying over $20,000 for the building.
Home Warranty Insurance for Builders: How does it work?
We live in a world where anything can happen and there are no guarantees on whether or not we will be here tomorrow. That being said, if a builder does not or cannot complete a contractual commitment because of death, disappearance, or insolvency, HCBF coverage offers the homeowner a safety net to cover the project.
This cover also includes any subsequent purchasers of the property. It is regulated by the Home Building Act of 1989 and managed by SICorp. It’s designed to promote fair trading and credible business practices. If you are a builder or related tradie, it’s necessary that you understand that this kind of home warranty insurance for builders sets and maintains the standard of competence for all tradespeople and builders within this industry.
Home Warranty Insurance for Builders: Choosing an approved insurance broker
Something else builders and related tradies need to know about the change in this insurance cover is that you must have an approved insurance agent to obtain this cover according to the NSW Self Insurance Corporation. They work in conjunction with the HBCF and have designed an outsourced model for the management of providing insurance cover in warranty insurance.
The approved insurance agent will manage underwriting and any claims within the guidelines of the HBCF objectives. This outsourced model falls under the HBCF along with Calliden Insurance limited and QBE Insurance Limited, entities operating as agents via contractual agreements.
The model includes, but is not only limited to ensuring that underwriting for builders is performed accordingly and on behalf of the HBFC in order to reduce the cost of claims and to ensure the best quality services to builders and consumers. These agents must realize they are acting as HBCF representatives and should conduct their business accordingly.
Home Warranty Insurance for Builders: Getting covered
Since it’s important and mandatory for licensed builders to have home warranty insurance for builders under the Home Building Act 1989 under the HBCF for residential projects before implementing building projects and being paid for it, builders must make sure to choose a recommended, approved insurance broker for advice and assistance. This also applies when a builder contracts with an owner-builder or a developer.
Where to find local home warranty insurance for builders:
If you do need a good insurance broker to help you with home warranty insurance for builders, try contacting an insurance broker from our Tradebusters Academy network. These insurance brokers specialise in helping tradesmen in business and we are sure one would be a good choice for you.