icare changes home warranty process for small builders
icare changes home warranty process for small builders
4 July 2022
NSW state-owned insurer icare has changed its home warranty scheme process to make purchasing the cover simpler for small builders.
A new automated system allows builders seeking less than $5 million insurance to apply for eligibility online through the Home Building Compensation Fund (HBCF) builders’ portal.
The transition to the new process takes place from today and through the next three years as builders’ existing eligibility expires and requires renewal or reassessment.
icare says it undertook a review of the eligibility system following a 2020 Independent Pricing and Regulatory Tribunal review of the HBCF.
“We worked closely with builders who told us the process was too complex, scheduling was sometimes challenging, and that we should be focusing our efforts on high-risk builders,” GM Insurance for NSW and HBCF Underwriting Nathan Agius said.
“We’ve listened and improved the process. We estimate the time for builder’s eligibility to be assessed will be cut from 10 business days to just two using the new Automated Scorecard Review assessments.”
The new system involves running a simple risk-based credit check, which reduces the need for some of the detailed financial information the old process required, icare says. An assessor will respond to the builder within 48 hours with a determination, based on an eligibility score.
Builders will continue to access the service through icare’s panel of approved distributors.
HBCF provides cover for defective and incomplete work where the builder or tradesperson has become insolvent, dies or in certain other circumstances.
