Changes to strengthen consumer protection under the Home Warranty Insurance scheme were passed by the NSW Legislative Council on November 12, “giving consumers an additional trigger to lodge insurance claims for defective or incomplete building work,” Fair Trading Minister Virginia Judge said.
Ms Judge said the Amendments represented the Government’s latest reform to home warranty insurance, which includes
- Increased cover from $200,000 to $300,000 (March 2007)
- Quarterly publication of data on the operation of the Scheme (March 2007)
- Streamlined protocols for claims made where the builder has disappeared (October 2007)
“Under the Home Building Act 1989, builders contracting for residential building work worth more than $12,000 must take out cover under the scheme,” Ms Judge said. “Currently, claims can only be lodged when a builder becomes insolvent, dies, or disappears.This has meant that some families pursuing builders who haven’t fulfilled their contracts are forced to spend time and money taking court action.
“Under these new laws, any builder failing to comply with a monetary order of a court or the Consumer, Trader and Tenancy Tribunal within 28 days will have their licence automatically suspended.
“Builders who have their licences suspended could also face disciplinary action, ranging from fines through to permanent disqualification. This will allow homeowners to make insurance claims more quickly, so they can complete construction or have defective work rectified, and get on with their lives.”
While Ms Judge welcomed the unanimous support of this important piece of legislation, she said there was more work to be done to further enhance consumer protection. “I’ve asked the Home Warranty Insurance Scheme Board to provide me with options to further strengthen the Scheme,” Ms Judge said. “I will give the Board’s advice careful consideration in the Government’s revision of the Home Building Act 1989.”
Yep, I’ll be waiting and watching on that one.
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