NIBA has provided a submission to the Tasmanian Government's Home Warranty Insurance consultation.
The National Insurance Brokers Association (NIBA) has provided a submission to the Tasmanian Government’s Home Warranty Insurance consultation.
The consultation paper sought feedback on the development of a new model for home warranty insurance (HWI) in Tasmania, putting forward a number of proposals 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, the 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’s submission supported the reintroduction of the scheme whilst acknowledging that complementary reforms to reduce the overall risk of the scheme would be required to ensure the long-term viability of the scheme.
Meanwhile, the Australian Capital Territory has announced a review of their Home Warranty Insurance system to ensure it remains fit for purpose. Currently, the ACT scheme has the lowest maximum claim value despite having the second-highest median property value in the country.