“NSW is experiencing a residential construction boom and these reforms protect homeowners and empower them to make more informed decisions.”
A bill to reform the HBCF is expected to be introduced to Parliament in the first half of 2017. Further information is available at www.sira.nsw.gov.au.
Key elements of the reform include:
- Insurers will be able to offer split cover for defects and non-completion, with homeowners entitled to $340,000 of cover for each product
- Risk-based pricing will be introduced, so that premiums better reflect a builders’ individual level of risk
- Premium increases will take effect in early 2017 to ensure the scheme’s sustainability
- Broker commissions will be phased out, to improve the scheme’s efficiency, eliminating 15% of the current cost of the policy
- The NSW Government will inject additional funds to return the scheme to surplus.
Find out more here.