The State Insurance Regulatory Authority (SIRA) is encouraging builders, homeowners, financial service providers, and other interested people to provide input on the proposed new home building compensation insurance standards in NSW.
In June the NSW Government passed legislation to overhaul the current scheme and the new standards will determine how the Home Building Compensation Scheme will operate from early next year.
Under this scheme builders and tradespeople must buy insurance when doing projects costing over $20,000.
Two discussion papers released today ask questions about what standards should apply to eligibility and premiums under reforms to the home building compensation scheme.
SIRA acting Chief Executive, Carmel Donnelly said eligibility for home building compensation cover was a key issue for building and trade contractors.
“Eligibility determines the type, value and number of projects that building contractors can carry out,” Ms Donnelly said.
“The new guidelines will need to strike a balance between protecting homeowners from home building risks, keeping the scheme affordable and allowing builders to go about their business without unnecessary restrictions - building homes for the people of NSW.”
Stakeholders are also encouraged to provide input on how premiums for insurance or alternative indemnity products should be set under the new scheme.
SIRA will independently regulate private providers, who may enter the scheme and offer home building compensation products in addition the NSW Government’s insurance provider, icare HBCF, from 2018.
To have your say and find out more, visit the SIRA website at www.sira.nsw.gov.au