If you reside in Australia and are constructing or remodelling a house, knowing about home warranty insurance is essential. This insurance, often called home building compensation cover, gives property holders a security net if their building contractor can’t finish the construction or repair defective building works.
In this blog, you will receive expert Advice on home warranty insurance and learn why it is crucial for both homeowners and building contractors.
First thing First, What is Home Warranty Insurance?
In simple terms, home warranty insurance is a type of policy that protects homeowners from monetary losses if their building contractor cannot fulfil the agreed-upon contract. This could be because the contractor becomes insolvent, dies or leaves the construction work incomplete. Basically, it ensures property owners aren’t stuck with unfinished or unsatisfactory work without any solution.
Legislative Background of Home Warranty Insurance:
The home warranty insurance was brought about by the Home Building Act 1989 (NSW) (HBA). This law says that building contractors doing residential projects worth more than $20,000 need to buy this kind of insurance. The homeowner must get a certificate showing they have this insurance, which protects them from any possible financial problems related to the contractor not finishing their work.
Consequences of Not Having Home Warranty Insurance:
The results of not having home warranty insurance are serious for building contractors and homeowners. If a contractor does not get this insurance, they may face significant fines and be unable to claim any money or enforce any rights under the building contract. They might also have problems with their licence and pay more for insurance later on.
Regarding homeowners who don’t have home warranty insurance, it signifies they are at financial risk. For instance, if a contractor doesn’t finish the work or fix issues in it and leaves behind incomplete construction with low-quality results, the homeowner may be left with no money to compensate for these losses.
Making a Home Warranty Insurance Claim
Homeowners could possibly have to make a claim within their home warranty insurance policy. This usually comes after certain “trigger” events, such as the contractor going bankrupt or dying, disappearing or having their building license suspended because they did not comply with a money order given for homeowner favour.
For homeowners to make a claim, they should gather and prepare all necessary documents. These include the insurance certificate, any communication with the contractor, and papers showing what work has been done or not finished yet. When you give detailed records and proof, it can help your case become stronger and speed up the process of making claims.
After you finish organising your paperwork, make sure to inform your insurance company quickly. Often, insurers have particular claims divisions for dealing with home warranty claims, and contacting them immediately might aid in making the process smoother. They will assist you by explaining what information is needed and what further actions must be taken.
Also, you should consider consulting specialists for the home insurance claims procedures. They can assist in understanding the details of your policy, help with needed paperwork and make certain that all legal obligations are fulfilled correctly. Additionally, they may act as an advocate during discussions with the insurer to ensure fair compensation is received by you.
Bottom Lines:
At Dwelcom, our team of professionals provide assistance for home warranty insurance claims procedures. With an emphasis on accuracy and industry expertise, we will guide you from the initial discussion to the final settlement, ensuring consistent results.