You should have received an email from the Home Building Compensation Fund (HBCF) regarding premium increases effective 1st July 2018.
The new premiums will be effective for all builders warranty certificates issued on or after 1st July 2018.
The premium increases vary depending on the type of project undertaken and your individual risk based premium weighting (loading/discounting).
Risk Based Pricing
Your individual risk based premium weighting (loading/discounting) may change effective 1st July 2018.
Please refer to your letter from HBCF which provides details of your new loading/discount.
Premiums have increased for the following project types:
- New Single Dwellings
- Single Dwelling Alterations (Structural)
- Swimming Pools
- Single Dwelling Renovations (Non Structural)
- New Duplex, Dual Occupancy, Triplex, Terraces
There will be no increases in premium at this time for:
- New Multi-unit Developments
- Multi Unit Alteration & Additions
- Multi Unit Non Structural Renovations
We anticipate there may be a rate change in the near future for the above project types however we do not know when this will occur.
These are now rated as a new single dwelling (previously they were rated as a structural alteration and addition).
Requirement to include insurance cost in building contracts
From 1 July 2018, you must state the cost of the icare HBCF cover in any contract to do insured work. The ‘cost of cover’ is the total amount of money you must pay for this insurance (including any brokerage, fees and taxes). This is a new legal requirement under the Home Building Act 1989 that is administered by the State Insurance Regulatory Authority and NSW Fair Trading. For more information see sira.nsw.gov.au or fairtrading.nsw.gov.au.
How Do I Obtain a Premium for a Specific Project?
You can obtain a premium for a specific project by:
- Calling our office
- Completing the NSW Builders warranty request quote form here.
- Forwarding your fully completed and signed project application form and we will provide you with an invoice.
We do not receive any commission from HBCF for arranging your builders warranty certificates.
The new base premium rates contained in the letter you should have received do not include your risk based weighting or our broker fee.
Our broker fee will remain the same and will not increase as a result of the premium increase.
How can I obtain my certificate at the current pricing before the rate rise?
In order for you to obtain your certificate for future projects at the current rate (prior to 1st July 2018) we require the following prior to 5pm Wednesday 27th June 2018:
- Fully completed and signed project application
- Any supporting documentation if required
- Payment of premium (An EFT receipt MUST be provided if paying via EFT)
This is subject to you having the available limits at the time the certificate is issued.
We cannot guarantee any project applications received after 5pm Wednesday 27th June 2018 will be processed on the current rates as we may not have sufficient time.
If you did not receive your email from HBCF please contact our office.