Home Warranty & Other Insurance In Home Building

Home Warranty & Other Insurance In Home BuildingBy Manoj Narsey - LAC LawyersHome Warranty Insurance Whether as an owner-builder or a contractor under a home building contract, home warranty insurance from an approved insurer is required for all residential building work exceeding $12,000.00. If an owner-builder decides to sell the property within 6 years after completing the work, then the owner-builder must attach a copy of the home warranty insurance certificate to the contract of sale. Under the home warranty insurance, the home owner can make a claim in respect of any: - structural defects within 6 years after completion of the work and notification must be given to the insurer within 6 months of becoming aware of the defect; - non-structural defects within 2 years after completion of the work; - incomplete work within 12 months after the failure to commence the work or cessation of the work. Obtaining home warranty insurance may also be the local authority's condition of approval of a development application. An applicant for a contractor licence is required to provide evidence of current home warranty insurance or a current certificate of eligibility to obtain home warranty insurance from an approved insurer. Note that developers of high-rise apartment buildings exceeding 3 stories are not required to arrange home warranty insurance for the building work nor are they required to attach a copy of the certificate to the sale contract. A home owner can only make a claim under the home warranty insurance if the builder becomes bankrupt or insolvent, dies or cannot be located. If the insurer does not make a decision within 90 days from the date of lodgment of the claim, then the insurer is deemed to have accepted the liability. If the home owner is not happy with the insurer's decision, then the home owner must appeal to the Consumer, Trader and Tenancy Tribunal within 45 days of the decision. Construction Risk or Builders All Risk Insurance (for

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