The Home Building Amendment (Compensation Reform) Bill 2017 amends the home building insurance sections of the Home Building Act 1989. The Bill was assented to on June 27, and will come into effect upon proclamation by Parliament.
The key changes include:
- Prohibiting claims made 10 or more years after the work was completed
- Introducing an indemnity scheme for insolvent licensed insurers
- Creating two separate insurance products, both of which will need to be purchased by builders. The first will cover loss related to non-completion, and the second will cover loss after the work is completed
- Issuing binding insurance guidelines
- Creating a State Insurance Regulatory Authority