Browse Forums General Discussion 1 Dec 10, 2008 10:40 pm Guys I cant see any references anywhere in relation to covering yourself when building a home.
Is there insurance you can take out, or what happens if for some reason your builder went broke? How do you take the risk out of builder selection? Re: Protection when building a home 2Dec 10, 2008 10:45 pm billdsl Guys I cant see any references anywhere in relation to covering yourself when building a home. Is there insurance you can take out, or what happens if for some reason your builder went broke? How do you take the risk out of builder selection? My understanding it that it is mandatory that a builder takes out insurance prior to commencing work. Re: Protection when building a home 3Dec 11, 2008 2:14 am I was under the impression that the insurance the builder takes out is to protect them in case you go broke, not the other way around... After 2 false starts, a year living overseas, two more world trips and 3 years of uncertainty we are now starting the build process again - hopefully for real this time! Re: Protection when building a home 4Dec 11, 2008 8:44 am Builder's Risk Insurance has to be taken out by every builder upon commencement of the build. This covers the customer that should something happen to the builder then the insurance company employs someone to complete the build.
Bank's will always ask for a copy of the BRI prior to drawing down the loan as they need to ensure that the home will be completed even if the builder folds. As far as I am aware there are no other insurance coverage that you can take out to ensure that the build is done. Some things are worth waiting for. Re: Protection when building a home 7Dec 11, 2008 5:13 pm Home Owners Warranty is your structural insurance (which lasts for 6 years and 6 months). Builders Indemnity Insurance covers your builder for anything stolen, any accidents and going broke etc etc etc.
I did have a client ask me once about his own insurance covering his fence, but I really didn't get involved. Told him to check with his own insurance company. Re: Protection when building a home 9Dec 11, 2008 6:58 pm Hi billdsl
Home Warranty Insurance is state based, so you need to find out the details as per your state. The BSA website will have details for you. Make absolutely sure that you receive a copy of the Home Warranty Insurance Policy and that it is included in your contract. It is mandatory but you need a copy of the policy to guarantee it has been taken out. If the builder goes broke after handover you are still covered for defects because the insurance remains in place for a specific time period. The insurance is taken out in your name, it covers you not the builder. You are more protected in QLD with this insurance than in other states. This is from the BSA website. "And for the lower premiums they have to pay, Queensland consumers get much more comprehensive insurance than people in other states. It's the only scheme in Australia that compensates for subsidence and settlement, and it's 'first resort' - you have access to the insurance if the builder fails to complete or rectify defective work, even if they're still trading". Re: Protection when building a home 11Dec 11, 2008 10:28 pm Hi billdsl
In Qld, the insurance is paid by the builder to the BSA upon signing the contract. This insurance covers non-conformance or non-completion. A certificate of currency will be issued to the builder who forwards this to the certifier and once the certifier has the certificate they will issue the plans to the builder for construction. Regards Paul Re: Protection when building a home 12Dec 12, 2008 10:00 pm Check out these couple of articles...
http://www.smh.com.au/news/national/rubble-trouble-how-our-system-fails/2008/09/21/1221935450246.html?page=fullpage#contentSwap2 http://www.smh.com.au/news/national/insurers-a-law-unto-themselves/2008/09/22/1221935544129.html Billdsl, since you are in QLD, you seems to have better protection. NSW consumers are not as lucky as you guys Building Clarendon Brighton - Done and moved in Sept 2009 Hi , I'm currently going through this now within the Whitehorse council which has a similar set of restrictions. We're having to make compromises with our floor plan due… 3 23743 Yes, neither is termite damage that is not covered by your house insurance. 3 5656 |