Builders and tradespeople can now take out their compulsory insurance under the Home Building Compensation Fund through private insurers approved by the State Insurance Regulatory Authority (SIRA).
Increased choice for builders means homeowners may receive greater minimum coverage of $340,000 for defects and $340,000 for non-completion. On top of the minimum cover, the new providers may offer innovative features, such as cover for additional risks or allowing claims in additional circumstances.
Homeowners and renovators will see greater transparency in building contracts from 1 July 2018, when all builders are required to disclose the amount of HBC insurance.
Minister for Finance, Services and Property Victor Dominello said the insurance was a vital safety net for homeowners.
“NSW is experiencing a building boom, so it is critical that homeowners are adequately protected,” Mr Dominello said.
All builders are required to take out insurance for residential building projects costing over $20,000. The cover protects homeowners in the event a builder cannot complete residential building work or fix defects, due to insolvency, death, disappearance or licence suspension