The following is a summary of the discussion paper
- This discussion paper provides an overview of the HBCF and identifies some of the issues affecting the scheme.
- HBCF are considering a range of options to make the current system more efficient, while ensuring consumers continue to enjoy the security offered by the HBCF.
Overview of discussion paper
- The Home Building Compensation Fund – introduction
- Insurance under the Act
- The case for reform of the Act
- Options for reform: The government has proposed the following recommendations:
- Model 1 - Retain current scheme, reduce administration costs and raise premiums
- Model 2 - Reduce scheme coverage
- Model 3 - Combination of reduced scheme coverage and raised premiums
- Model 4 - A voluntary insurance scheme
- Model 5 - Combination of voluntary and mandatory scheme. FOR FULL DISCUSSION PAPER SEE Click here to see attachment
- Why should your Sub-Contractors be Insured with the same Broker?
- Ensure adequate insurance coverage
- Confirmation of premium payment
- Issuing Certificates of Currency immediately
- Avoid claims being reported under your insurance policy if the subcontractor (tradesman) is liable
- Avoid paying unnecessary excesses which may not be recoverable
- Avoid possible increases in your premiums We have a 7 in 1 Solution for Tradesmen at competitive premiums. Please refer to attached brochure Click here to see attachment
Builders be Aware ALL BUILDERS BE AWARE THAT WHILST UNDERTAKING A PROJECT FOR ALTERATIONS OR ADDITIONS THAT MOST DIRECT INSURERS HAVE AN EXCLUSION ON THEIR POLICIES THAT EXCLUDES EXISTING STRUCTURES WHILST UNDER CONSTRUCTION. ALTHOUGH IT IS THE OWNER’S RESPONSIBILITY TO MAKE SURE THEIR EXISTING STRUCTURE HAS ADEQUATE COVER WHILST UNDER CONSTRUCTION YOU ALSO HAVE A DUTY OF CARE TO MAKE YOUR CLIENT AWARE OF THIS.