The scheme has been renamed from Home Warranty Insurance Fund (HWIF) to the Home Building Corporation Fund (HBCF).
The scheme sits at the end of a comprehensive consumer protection regime for homeowners undertaking residential building projects in NSW where the contract price exceeds $20,000.
Insurance under the HBCF provides protection for homeowners, including subsequent purchasers, for losses arising from defective and incomplete work where the builder or developer becomes insolvent, dies, disappears or the licence of the builder is suspended for failure to comply with a money (compensation) order in favour of the homeowner made by a Court or the NSW Civil & Administrative Tribunal (NCAT).
It is recommended that prior to making any payment under a sale or building contract, homeowners check the validity of the certificate of insurance.
Caution: A certificate of insurance is separate to a certificate of eligibility. A certificate of insurance is cover issued specifically for your project, but ‘eligibility’ merely means that the builder has been assessed by an approved insurance agent and has been granted the entitlement to apply for job-specific certificate of insurance. Homeowners should ensure that the certificate of insurance they receive is a job/project-specific certificate.
Select Insurance Brokers can assist Builders, Trademans and Developers in arranging Home Warranty Insurance.