A MBA Insurance Services rep summarised some changes to the HBCF  at the recent Master Builders Association event I attended in Springwood in the Blue Mountains.

These are very relevant to small home builders.

An extract from the MBA Insurance Service webpage is below and for more information this link to MBA Insurance Services.

On the 4th August 2015, the Home Building Compensation Fund (HBCF) framework will change, placing more onus on builders when finalising contracts.

New Eligibility Limits

The Rolling Annual eligibility limit that currently sees projects ‘rolling off’ 12 months after they are registered for Home Warranty, will be replaced with eligibility now based on Open Job and Contract

Value limits. New eligibility limits are being issued to each builder

The new limits will be based on the number of jobs and total value of projects under construction.

During this changeover, all of your existing jobs that will not be completed by 4 August 2015, will remain ‘open’ within your Facility, until you supply us with a project completion certificate.

New Project Completion Process

From 4 August 2015, you will be required to provide a short declaration of practical completion for each project registered, confirming the following as a minimum:

• Project has reached practical completion

• Updated property address

• Home owners details

This can be done simply by emailing our office with the declaration form. Once you have made your declaration, the job and contract value will be added back to your open eligibility limit. At the same time, the home owner will be advised that the HBCF policy has commenced.

Get Expert Advice

HBCF are now restricting the number of insurance brokers who can distribute this product on their behalf, given the complex nature and specialised knowledge required to manage your ongoing Facility.