Experience with HBCF insurance claim process NSW

Hey, do you guys have any updates with claiming HBCF?

Yes, I have submitted the Loss Notification form. We're with Fair Trading now, they've given the Builders deadlines for works to be completed. Unsure if Builder can make those deadlines, looks tight.


have you made the claim yet?

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.

Thank you very much SydneyPSSS for taking the time to reply and for sharing your experience with us. We are very grateful for all the information you shared - it is invaluable to be able to learn from you how you went about the HBCF claim process especially as there is very little information available from homeowners who have gone through the process.

I must say I had to read your reply a few times to see if I understood the timing/timeline of the steps you undertook as it is a bit different to what I was expecting the process to be. From my understanding, the steps you took were that you firstly engaged a Building Inspector to prepare a Scot Schedule that listed out all the items of incomplete/defective work (which included the estimate costs for each of these items). Afterwards, you then found a builder who was willing to complete your home build, and this builder provided you with their costs (fees) to complete each of the items listed in the Scott Schedule. And then, it was only after these two steps, then you submitted the Claim form to HBCF who then sent their own building inspector to inspect the works and assess the claim you made. Is my understanding correct?


The process I was envisaging was to 1. Submit the HBCF claim (either with or without our own building inspector report). 2. After we submit the form, then HBCF /ICare will send a building inspector to inspect the works who will then determine/assess the works that are incomplete. 3. HBCF will then put to tender the work to be completed and call for tenders from new builders to complete the work and what their fee/price/costs will be.

I guess the main difference between what you have shared is that you went ahead and found your own (and likely preferred!) builder first without HBCF involvement. This is something that we hadn’t thought of.

Thank you for sharing how much it cost for you to obtain a building inspector report (Scott’s schedule) - as this is quite a huge outlay, we have to consider the cost/benefit, pros/cons etc whether to get our own or rely on the building inspection report that HBCF does…..

Thank you very much again for sharing your insights with us.

B.S.E

PS - I am mindful that under the HBCF Policy cover - claims for “incomplete” work are separate to claims for “defects”. which can be either “major” or “minor” defects all terms that are defined under the Policy and have different timeframes /periods of cover - so homeowners need to carefully read and note this.

There is a booklet on the HBCF website HBCF Claims Information for Homeowners that is helpful so sharing in case it helps anyone else..but we still have things we are unclear about so we are still trying to understand the process more, eg how compensation amount is calculated etc


https://www.icare.nsw.gov.au/-/media/ic ... owners.pdf