1Also known as Home Building Compensation (HBC) cover, Domestic Building Insurance (DBI), Building Indemnity Insurance (BII) and Home Indemnity Insurance (HII). We strongly recommend verifying the details of whether a property has HBC Coverage by contacting the icare HBCF Customer Support Team either at enquiries.hbcf@icare.nsw.gov.au or on 02 9216 3224 . HIA Insurance Services arranges a variety of products for builders and tradies in the construction industry. Helping you to run your business, including specific industries like conveyancing, motor trades and building certifiers. Your customer can make a claim on your HBC cover if you're unable to complete building work or honour yourwarranty obligations, because: The State Insurance Regulatory Authority (SIRA) regulates the HBC scheme, and icare HBCF is the only insurer provider that offers HBC cover. We acknowledge the Traditional Owners on the many lands the people of the ICA reside and work. Aon will not be responsible for any loss, damage, cost or expense you or anyone else incurs in reliance on or use of any information contained in this website. Make sure all employees are covered by their employer for workers compensation. Home Building Compensation Fund (HBCF) cover (formerly called Home Warranty Insurance) is needed if youre a licensed builder or tradesperson in New South Wales and youre about to undertake a home building project valued at $20,000 or more, including GST. To gain access, you will need to appoint a self-service portal manager within your business and send us theirfull name, mobile numberandemail addresstoau.hiais@aon.com. Builders warranty insurance is a type of insurance which, in theory, is supposed to provide cover to protect you as the homeowner under circumstances where you're having trouble with work that's been done (or not done, if that's the case) by your builder. Helping you understand how to qualify as a property professional, run a property business, and your responsibilities when managing properties. These average premiums are based on home and contents insurance policies rated in Canstar's 2022 Home and Contents Insurance Awards and Star Ratings. Builders Warranty in New South Wales: What You Need to Know E: tshandiman@iaa.net.au. Insurance designed for tradies & subcontractors, no matter your size or profession. It protects homeowners from faulty workmanship or non-completion of a contract if the builder cannot through Death, Insolvency or disappearance. Builders are required to obtain a Certificate of Insurance under the HBCF scheme for all residential building projects, where the contract price is over $20,000. Sum Insured Calculators - The Builder Broker Insurance If you fail to do so, you cant enforce the building contract against the owner and you may be liable to substantial fines. Additional service fees may be charged by the builder's broker for their services. Before your builder or contractor starts any kind of residential building work valued at over $20,000 (or receives any payment under the building contract for that work, including a deposit), they must provide you with evidence of cover under the home building compensation (HBC) scheme (for example, icare HBCF issues Certificates of Insurance) A minimum premium of $200 applies to all projects. You should seek independent legal or other professional advice before acting or relying on any of the content of this information. To be eligible to apply for HBC cover you'll need to have: HBC cover protects your customer if you cannot complete building work or honour your warranty obligations. Find out about your workers compensation obligations using the handy web tool, Small Business Assist. Contact the product issuer directly for a copy of the PDS, TMD and other documentation. Information on draw lotteries, no-draw lotteries, mini number lotteries, progressive lotteries and free lotteries. You must state the cost of HBC cover in your building contract. The statutory warranty for owner-builder works continues. Licensed contractors that take on residential work valued at $20,000 or more need insurance cover through hbcf. Check with your local council or shire to find out if your property is in a hazard zone that may have a requirement for different building standards to apply in the event your property is a total loss. You can apply for eligibility through an approved Home Warranty Insurance distributor, of which HIA Insurance Services is one. However, homeowners have the option of purchasing additional cover up to $300,000. Cover image source: Romolo Tavani/Shutterstock.com. The amount of coverage will vary depending on the state or territory. Canstar rates policies based on the premiums charged and the level of cover you get, helping you narrow down your options to the policies offering great value overall. Insurance designed for tradies & subcontractors, no matter your size or profession. Warranty Insurance HBCF Calculator NSW ONLY - #igyrotraining The insurance covers up to the amount of $300,000, including up to 20% of the building contract price for incomplete works. two years from the date work starts for non-completion of work claims and the claim must be lodged within three months after the date the contract ends. HIA Insurance Services arranges a variety of products for builders and tradies in the construction industry. Corporate Authorised Representative of Advisernet Australia P/L, AFS License No: 240549 ABN: 28 142 240 997, Select Construction Type C09 if new single dwelling includes an additional secondary dwelling (granny flat), Select Construction Type C03 if this project is Strata/Community title, (inclusive of all fees & charges including GST). Canstar may receive a fee for referring you to a product provider for further information, see how we get paid. For homeowners, its generally important to make sure the builder shows you proof of cover before they start work. The Building Act provides a statutory warranty for building work on a residential building that requires a building approval and has a cost of $12,000 or more. We understand the unique risk exposures of Australian builders, tradies and subcontractors. Protect your assets against loss or damage by taking out Contract Works Insurance. HBCF - Premium Calculator Select Construction Type C09 if new single dwelling includes an additional secondary dwelling (granny flat) Total Contract Value $ Postcode of Works Note This calculator will provide the premium charged by icare for new projects based on the details you enter. You need to get a Certificate of Eligibility before you can apply for insurance cover. If youre a licensed builder or tradesperson in New South Wales, you must take out HBCF cover for every home building project you undertake valued at $20,000 or more, including GST. Click on a tile below to get started. If you are a licensed builder dealing directly with homeowners and you undertake work that is required to be warranted in your state, then you must purchase home warranty insurance prior to the commencement of work, the spokesperson said. Home building compensation (HBC) cover formerly known as home warranty insurance is an important consumer protection for homeowners in NSW. Choosing the right sum-insured for your property and contents is important. It is important to understand calculators provide only a guide for rebuilding your existing building. 2020 IRECON Insurance Services All Rights Reserved. All representations on this webpage in relation to the insurance products HIAIS arrange are subject to the full terms and conditions of the relevant policy. The insurance covers up to the amount of $100,000 and up to $20,000 for loss of deposit. Factoring these additional costs into your sum-insured will be an important consideration. Before licensed builders and trade contractors can contract to work on certain residential building jobs, they need to have home building compensation (HBC) cover. For builders and tradies - SIRA Premiums change from time to time and the premium shown may not be the applicable premium when the policy is issued. HBC Check - SIRA Its important to note that you must provide this Certificate of Insurance to the homeowner or developer before you start work or request a deposit. Consider the Product Disclosure Statement (PDS), Target Market Determination (TMD) and other applicable product documentation before making a decision to purchase, acquire, invest in or apply for a financial or credit product. If a policy is cancelled the administration fee and broker fee will not be refunded. The results from this calculator are an approximate guide only and should not be taken as advice or a recommendation to acquire any product or level of insurance cover. To quote from the NSW ICare site: "The Home Building Compensation Fund provides a safety net for home owners in NSW faced with incomplete and defective building work carried out by a builder or tradesperson. Find out what to do about delays, price increases, insolvent builders and solving disputes. Home Warranty Insurance is compulsory (with some exceptions) for residential building over a particular value and that value varies from state to state. TheHBCF Builder Self-Service Portalis a convenient alternative to applying for your Certificates of Insurance. It may include a fire service levy, an emergency service levy and GST. Home Warranty Insurance is unique in that government determines Home Warranty policy terms in each state and territory (except for Tasmania and the Northern Territory, where its not required by law). Information for builders and tradies about home building compensation requirements. There are penalties for failing to take out workers compensation, CTP or home building insurance. Typical building replacement costs are provided byRP Data Pty Ltd t/as CoreLogic Asia Pacific (ABN 67 087 759 171) (CoreLogic) and typical building contents replacement costs are provided by Sum Insured Pty Ltd (A.B.N. See for example the Variations clause in the NSW Fair Trading Home building contract template for work valued over $20,000. Provides essential cover when you're faced with legal action. If the builder or tradesperson does not have this type of insurance, you may risk: Professional indemnity insurance covers certifiers, architects, engineers and building consultants for claims against professional services provided. Tyrone Shandiman. This is a free publicregister that anyone can access to verify that a builder or tradesperson has validcover for the residential work they're doing in NSW. The insurance covers up to the amount of $150,000. Types of scams and cybercrime, how to report them, getting help and tips to stay safe. The estimate will reflect the property's address, the home's size and the materials and labour needed to rebuild it. If you are seeking to replace an insurance policy, you should consider your personal circumstances, including continuing the existing cover until the replacement policy is issued and cover confirmed. Builders Warranty Insurance by The Builders Insurance Brokers HBC cover, which used to be called 'home warranty insurance', protects homeowners as a . These different building standards could significantly affect your rebuilding costs. 80 132 719 861) trading as Cordell Information ('Cordell') and typical building contents replacement costs are provided by Sum Insured Pty Ltd (A.B.N. Our specialist brokers can help building sector professionals by managing complex paperwork on their behalf. Home Owners Warranty Insurance (NSW) - Grace Lawyers if the value of your home has increased as a result of renovations, you may wish to increase the value of your home/building insurance policy. The six-month period starts from the date of the loss becoming apparent. Am I covered? However, this is not a requirement in Queensland. Before launching the calculator There are some details you need to gather before launching the calculator: Your home area in m2 Materials your home is made from Ceiling height List of features like security system. A Certificate of Insurance is required for residential building projects valued at over $20,000 including GST. You may not legally be able to perform the work without it. Variations to contract values are to be referred to the building contractors broker for premium pricing. In New South Wales and Western Australia, home builders and renovators are required to take out Home Warranty Insurance for residential building contracts valued at $20,000 or more. If youre undertaking domestic building work over a certain threshold (which varies across the states and territories), you should consider if Home Warranty Insurance is required. before it was updated, as part of our A Certificate of Eligibility means youve been assessed by icare and have been granted an entitlement to apply for a Certificate of Insurance.