14 June 2017
Tuesday 14 June 2017
Defects can create considerable costs and disruption for homeowners but the options for getting relief are limited. The timelines and types of defects homeowners can pursue a builder for under statutory warranties have become overly restrictive and home building insurance is only available when the builder has died, disappeared, is insolvent or refuses to comply with a court or tribunal order. The system doesn’t cover large apartment buildings. Notwithstanding, the home building insurance fund underwritten by the government, is over $300 million in deficit and I understand this is because so many builders go insolvent, often to continue working under a new company.
To make the system sustainable, the government will open up home building insurance to private insurers, with an authority to oversee premiums and make rules. During debate, I asked the government to address concerns that the bill’s drafting could limit coverage and again called for apartments to be included in the scheme. The government should focus on ways to encourage better building practices to make the system more sustainable. My speech is HERE.