FAQ

FAQ

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Certificates of Insurance – Dont be fooled read the requirements

Legislative Requirements

The Home Building Act 1989 contains provisions requiring home warranty insurance to be obtained for certain residential building work undertaken by builders and owner-builders.

The Act also requires that builders, owner-builders and developers provide homeowners with a Certificate of Insurance as evidence that a Contract of Home Warranty Insurance (i.e. policy) is in place for the work.

Under the legislation governing the operation of the development and construction approval process (Environmental Planning and Assessment Act 1979), the Council/Principal Certifying Authority (PCA) is required to be notified of the builder for the project. It is also a standard condition of the approval for a residential building project that home warranty insurance be obtained. Where home warranty insurance is not obtained, the Council/Principal Certifying Authority may not be able to issue an occupation certificate for the completed building work. This may impact on the ability to legally occupy the completed building work and may also adversely impact on the future saleability of the property and its market price.

Further information on the categories of residential building work requiring home warranty cover and the thresholds applying to the requirement for such cover to be in place may be obtained from NSW Fair Trading (telephone 13 32 20 www.fairtrading.nsw.gov.au).

https://homewarranty.nsw.gov.au/portal/server.pt/community/c%3Bhomeowners/257/information_for_homeowners/1161

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