Bellamack homeowners await payment under housing insurance schemes

However, some residents continue to occupy the homes while waiting for compensation under the insurance scheme.

Single mother Michelle (not her real name) recently moved into an elevated, tropical house in Palmerston, which she bought for $400,000. However, she told ABC that her entire home began to shake “like it was an earthquake” when her washing machine entered its spin cycle.

Meanwhile, Ben (not his real name), who lives in the same neighbourhood and whose house was built by the same builder and developer as Michelle’s and employed the same distinct design, said he can feel his four-and-a-half kilo dog running up and down the stairs.

“It seems concerning how that could continue to be the case when one is faced with the contents of the expert reports,” the Commissioner of Residential Building Disputes wrote in documents obtained by ABC.

Michelle and Ben found that Fidelity Fund, which can cover for structural defects up to six years after houses are completed if certain triggers are met, had already expired by the time they made inquiries.

Under another scheme, homeowners may apply to a bureaucrat, the Commissioner of Residential Building Disputes, for a decision about whether certain consumer guarantees for residential building work were breached. However, payouts of over $100,000 must be referred to an independent tribunal, the Northern Territory Civil and Administrative Affairs Tribunal (NTCAT).

Commenting on awaiting compensation, Ben told ABC: “I [sort of believe] now that, at the end of this, we’re going to have nothing. We’ll just be left with the problem, and it will be too bad, so sad.”

Climate change is widening the gap in home insurance affordability, leaving Bellamack homeowners no choice but to wait for compensation under the insurance scheme.