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 12Mar 20, 2024 11:22 am Bluespeckledeggs 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. I apologise for any confusion, but your understanding is correct. We approached our situation differently based on advice from someone who had experience with Icare. They had encountered issues with their claim due to missing documents, relying solely on Icare's inspector for defects, and not having a backup builder in place. To avoid these pitfalls, we conducted our own investigation before submitting our claim. When our original builder faced liquidation in October 2023, we waited until November 2023 to submit our claim to Icare. This allowed us to submit all necessary documents at once, streamlining the process, and Icare settled the claim in February 2024. Our initial builders stopped work after receiving frame payment. We sought advice from various sources and initially planned to go through NCAT. However, the builders went into liquidation. We sought a second builder as a precaution due to delays and concerns with the first builder. We consulted Fair Trading, who advised us to initiate a trigger event by taking our case to NCAT. After Fair Trading issued a rectification order and deadlines to the builder, and the builder failed to comply, we obtained a Scott schedule and prepared to go to NCAT with a second builder. However, before proceeding, we learned that the original builder was liquidated. We monitored the ASIC website, gathered the required paperwork, and promptly submitted our claim to Icare once the liquidation was confirmed. It is important to note that Icare only pays 20% of the original contract amount for incomplete works. For example, if your contract was $600,000, Icare will pay $120,000 for incomplete works. Therefore, for defect works, you can only claim up to the remaining cap of $340,000, which is $220,000. Hopefully you will have enough to complete your build. All 3 items listed are defects and are of concern. Please seek qualified independent inspector and/or legal advice for your state. 1 8415 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 5334 1 9609 |