Browse Forums Building A New House Re: Experience with HBCF insurance claim process NSW 8Mar 14, 2024 3:11 pm We are Expert Consultant's, and we are here to help. Re: Experience with HBCF insurance claim process NSW 13Jul 26, 2024 4:45 am ![]() Hi, I know how hard it is to get information, I researched the whole internet to find answers, but the best way to get information was to talk to builders. We spoke to probably over 15 builders. Our build still not finished, HBCF took 4 months to settle our claim in Feb 2024. We knew early that our builder was in trouble and thank God we acted straight away and submitted a loss notification form, it was 6 months after that our builders went into liquidation which was Oct 2023. Just remember that you only have 12 months to put claim in for defective work, our builders tried to delay us as mush as possible but luckily, our loss notification form was submitted within the timeframe. Our builder stuffed us around for almost 2 years, only now, our new builder has started to rectify defective work. 1.The HBCF guide for homeowners seems to suggest that the HBCF only assesses the claims that the homeowner specifies in the claim form so is reliant/dependent on what the homeowner submits. If this is true, then homeowners are really in a disadvantaged position as we are not qualified/skilled to be able to identify any defective work - and therefore, how do we know that we should be making a claim for defects for something (especially when something is half completed (some parts complete and some parts incomplete) ? We got a building inspector to do a report (we did not give this report directly to HBCF) we used it to understand what needed to be rectified. Our builders were a nightmare, and after the first year of delays, we looked at our worst-case scenarios and started talking to other builders and as you mentioned it was extremely difficult to understand the HBCF/ICARE process and limited information from other people’s experiences. So, by the time our builder went into liquidation, we already knew what steps to take. We found a builder who was willing to help us, and we gave the inspectors report (Scott schedule) to them, with that information the builder was able to assess what needed to be rectified and put their cost which we submitted in our claim. Our claim was more than the $340000 cap. If your claim comes under the cap, your builder can submit further claims as the building commences. for example, the builder may not be aware that there is a plumbing issue until he gets to that stage, It is possible that other defective works can come up later in the build which your builder can still claim. Just remember that you can also include rent in your claim. 2. Alternatively, if the building inspector that HBCF appoint does in fact do a thorough inspection and identifies any defects that can be claimed - can this be relied upon as a sign-off on the items where NO defects were identified? HBCF told us that they did send an inspector, and that person did not disagree with our claim and in fact supported it. like I said, it would be useful to get a inspector yourself, ours cost $5000. You can claim this back on insurance as well. The only reason we didn’t submit ours to HBCF is because it was a Scott Schedule which had approx. costs and we wanted to submit our claim with our builders’ costs. I know some people might say “well if your certifier has signed it off then you can’t claim any defective work” this is not necessarily true, because works can become defective over time especially due to exposure to weather etc. so, you can still claim defective under those circumstances. We had mould, rust, and damaged frames from weather exposure and frames not properly stored or installed like bolts missing. You can also claim overgrown vegetation, site clean up, unsecured etc.. 3. For incomplete work, does HBCF get into contact with the Certifier to see what has passed/certified and what hasn’t ? HBCF will request documents from you, they may even request directly from certifier and these will include certificates of works already passed. Your situation would be different from ours as your house is halfway done and ours at frame stage. 4. Is there any way that final OC approval will be guaranteed under the new builders that are appointed under the HBCF claim process? Yes, You will get OC as long as new builder has all certificates, I heard that HBCF does allow partial OC, so some owners can move in and still finish homes like driveway and yard. You can use HBCF's builders or find your own. Im not sure where u are, but if you like to speak with my builder I can let him know. Hi Sydney psss I'm in the same situation now. I just found out yesterday that my builder went to administration and his licence has been cancelled. He advised me to start process of making a claim to the icare home insurance. Would you mine please give me your builder who help you out .I will do same as you did. Thanks so much for sharing your experience. Regards Winston hills Re: Experience with HBCF insurance claim process NSW 14Jul 27, 2024 9:24 am Hi, I hope this helps. Icare took 4 months to settle our claim. We prepared a Scott schedule outlining rectification/variation costs and submitted it to our new builder, and they provided thier quote which we gave to Icare. Typically, Icare provides 20% of the contract price for incomplete works, with additional costs for defects. For example, if the contract price is $600k, Icare would initially pay $120k. If the rectification cost is $80k, Icare would pay a total of $200k. You can also claim rent, storage costs, legal fees, and inspection fees, capped at $340k. It's important to justify your claims and present all possible expenses. It's advisable to make defects appear more serious than they are, as additional issues may arise later. You can continue to make claims with Icare as the new builder progresses until you reach the cap of $340k. In regards to “pay you in excess for final stage payments”. Im assuming you mean, if the final payment is $50k will Icare just give the $50k or give the full $340K. Icare sees it like, Did the builder build correctly? If the answer is yes, then you can’t claim for defects but you can claim for incomplete work which is 20% of your contract price, so you should get $120K. But that’s why you need to find defects, it could be very minor such as the door height is wrong. Everyone’s case is different so just be careful how you go about it. Re: Experience with HBCF insurance claim process NSW 15Jul 27, 2024 9:35 am ![]() Hi, I hope this helps. Icare took 4 months to settle our claim. We prepared a Scott schedule outlining rectification/variation costs and submitted it to our new builder, and they provided thier quote which we gave to Icare. Typically, Icare provides 20% of the contract price for incomplete works, with additional costs for defects. For example, if the contract price is $600k, Icare would initially pay $120k. If the rectification cost is $80k, Icare would pay a total of $200k. You can also claim rent, storage costs, legal fees, and inspection fees, capped at $340k. It's important to justify your claims and present all possible expenses. It's advisable to make defects appear more serious than they are, as additional issues may arise later. You can continue to make claims with Icare as the new builder progresses until you reach the cap of $340k. In regards to “pay you in excess for final stage payments”. Im assuming you mean, if the final payment is $50k will Icare just give the $50k or give the full $340K. Icare sees it like, Did the builder build correctly? If the answer is yes, then you can’t claim for defects but you can claim for incomplete work which is 20% of your contract price, so you should get $120K. But that’s why you need to find defects, it could be very minor such as the door height is wrong. Everyone’s case is different so just be careful how you go about it. Hi Sydney Psss I'm on the same situation now,just found out that my builder is on liquidation, I have paid him 85%already even though the job is probably on 60%. I'm gonna hire a building inspector like you did and a builder as well. Can you please share me your builder's contact details. Thanks for sharing your experiences yo us, it's very much appreciated. Regards Alvin Re: Experience with HBCF insurance claim process NSW 16Sep 04, 2024 9:31 pm Hi everyone, Sorry to hijack this post but we have just been told our builder has gone into liquidation and we are at practical completion. The liquidators have told us today to contact hbcf to claim insurance for the unfinished work and defects. Several people have told me we need to seek legal advice prior to lodging our claim, but I just don't understand why? Has anyone needed legal advice prior to claiming through Hbcf? Re: Experience with HBCF insurance claim process NSW 17Sep 05, 2024 4:20 am ![]() Hi everyone, Sorry to hijack this post but we have just been told our builder has gone into liquidation and we are at practical completion. The liquidators have told us today to contact hbcf to claim insurance for the unfinished work and defects. Several people have told me we need to seek legal advice prior to lodging our claim, but I just don't understand why? Has anyone needed legal advice prior to claiming through Hbcf? Hi Blossom Sorry to hear. I hope you don't mind me asking what is possibly a dumb question....I haven't been in your position before so I don't understand the process. My question is, if you are at PC, why do you need to lodge an insurance claim? Like what is your loss that you need to be compensated for? Your home is finished so why can't you just move in. ICARE will still cover your 6 year structural warranty won't they? Again, I don't understand the process, I just pay them a ton of money every year so you probably have a very good explanation Cheers Simeon Architectural Homes & Duplexes - specialising in custom designing homes to your budget Get a Free Onsite Consultation Today or send a PM for information, questions or advice. Re: Experience with HBCF insurance claim process NSW 18Sep 05, 2024 6:34 am ![]() ![]() Hi everyone, Sorry to hijack this post but we have just been told our builder has gone into liquidation and we are at practical completion. The liquidators have told us today to contact hbcf to claim insurance for the unfinished work and defects. Several people have told me we need to seek legal advice prior to lodging our claim, but I just don't understand why? Has anyone needed legal advice prior to claiming through Hbcf? Hi Blossom Sorry to hear. I hope you don't mind me asking what is possibly a dumb question....I haven't been in your position before so I don't understand the process. My question is, if you are at PC, why do you need to lodge an insurance claim? Like what is your loss that you need to be compensated for? Your home is finished so why can't you just move in. ICARE will still cover your 6 year structural warranty won't they? Again, I don't understand the process, I just pay them a ton of money every year so you probably have a very good explanation Cheers Simeon Hi Simeon, We still have some incomplete work, nothing major, but it is still work that's part of the contract and a requirement for our build. Our roof also hasn't been built to standard and needs to be rectified. Until this work is done we can't get an OC. We've been pursuing the builder for a while now, had a letter of demand sent and been to the building commission not too long ago who contacted them, builder said they know they have to do the work and now they have gone into liquidation. All 3 items listed are defects and are of concern. Please seek qualified independent inspector and/or legal advice for your state. 1 9159 ![]() DIY, Home Maintenance & Repair The workmanship is lifetime guarantee by "the insurer", not the builder. They will of course ask the initial builder to rectify and if they don't they will appoint… 7 7339 On the day liquidated damages kicked in, I texted my SS "Good morning and happy "Today liquidated damages begins today day!" We had a little over 3 weeks claim and no… 1 3477 |