New triggers for NSW home warranty claims
October 20th, 2010
On April 1, 2009 a fourth trigger was added to the “causes” for a home warranty insurance claim in New South Wales.
The causes are now: 1. The Death of the Contractor; 2. The Disappearance of the Contractor; 3. The Insolvency of the Contractor; 4. The Suspension of a Contractor’s licence for non-payment of a monetary award by the CTTT or a court.
Suspension of licence will result in the Contractor no longer being able to carry on with Works in progress or new contracts. All Works will need to be passed over to another Licensed Contractor. The suspended Contractor will retain the Contractual Liabilities contained in the original contract and under the Home Building Act 1989, although they will not be involved in the continuation of the Works. Also, following an award handed down in the NSW Supreme Court, the time limitation for claims is in doubt.
According to Nationwide Insurance Brokers, these new developments are prompting insurance companies to increase their insurance premiums.
SPASA NSW and Nationwide Insurance Brokers have arranged for a “SPASA Branded” Home Warranty Insurance with Lumley General Insurance as a precursor to having its own Warranty for all Members, controlled by SPASA rather than insurers.
For more information contact Nationwide Insurance Brokers on 02 9634 6600 or SPASA NSW.
The causes are now: 1. The Death of the Contractor; 2. The Disappearance of the Contractor; 3. The Insolvency of the Contractor; 4. The Suspension of a Contractor’s licence for non-payment of a monetary award by the CTTT or a court.
Suspension of licence will result in the Contractor no longer being able to carry on with Works in progress or new contracts. All Works will need to be passed over to another Licensed Contractor. The suspended Contractor will retain the Contractual Liabilities contained in the original contract and under the Home Building Act 1989, although they will not be involved in the continuation of the Works. Also, following an award handed down in the NSW Supreme Court, the time limitation for claims is in doubt.
According to Nationwide Insurance Brokers, these new developments are prompting insurance companies to increase their insurance premiums.
SPASA NSW and Nationwide Insurance Brokers have arranged for a “SPASA Branded” Home Warranty Insurance with Lumley General Insurance as a precursor to having its own Warranty for all Members, controlled by SPASA rather than insurers.
For more information contact Nationwide Insurance Brokers on 02 9634 6600 or SPASA NSW.
By The Splash Team
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