Consultation has now begun with the Tasmanian Government looking to reintroduce a Home Warranty Insurance scheme.
Consultation has officially begun on the proposed model for a Home Warranty Insurance scheme for Tasmania, with a consultation paper released for public feedback last week.
The consultation paper seeks stakeholder feedback from both industry and consumers on the development of a new model for home warranty insurance (HWI) in Tasmania, putting forward a number of proposals that seek to balance consumer protection with the long-term economic viability of the scheme and building costs. The proposed scheme would use a “last resort” model consistent with most Australian jurisdictions and provide cover for incomplete or defective building work in the event that a builder dies, disappears or become insolvent.
Home warranty insurance was previously abolished in 2008, however the collapse of two construction firms, Tasmanian Constructions and Inside Out Constructions, has prompted the state government to reintroduce the scheme.
In a statement provided with the consultation paper, Minister for Workplace Safety and Consumer Affairs, Elise Archer said that the re-introduction of Home Warranty Insurance in Tasmania would complement other changes already being implemented by the Tasmanian Government to strengthen consumer protections within our building regulatory framework. This includes a financial support package for homeowners impacted by the recent company failures.
NIBA will be providing a submission to the Tasmanian Government. Members wishing to provide feedback should direct their correspondence to NIBA’s Policy and Research Manager at email@example.com. Submissions close on 6 June 2022.
To view the consultation paper, click here.
For details on how to make a submission, head to http://www.justice.tas.gov.au/haveyoursay.
I also encourage everyone with an interest in this important issue to jump online and have their say before submissions close on Monday, 6 June 2022.