Fair Trading Minister, Linda Burney, announced that NSW homeowners in dispute with their builder will have faster access to home warranty insurance.

Ms Burney said the NSW Cabinet agreed to reforms to the Home Building Act that will allow consumers to lodge a home warranty insurance claim if their builder fails to comply with a monetary order of the Consumer, Trader and Tenancy Tribunal.

Currently, homeowners can only make an insurance claim if the builder disappears, dies or becomes insolvent.

“These amendments when passed by the Parliament will allow homeowners to more quickly make a claim so they can get their building rectified and get on with their lives,” Ms Burney said.

“The changes will also provide the capacity for insurers to chase these builders to recover any money paid out as part of the claim.

“An additional penalty these amendments will bring upon bad builders is that failure to comply with a monetary order of the Tribunal may result in their licence being suspended and could see them facing disciplinary action such as a fine.

“These amendments will further improve the effectiveness of the home warranty insurance scheme and its ability to deliver a quality product to the people of NSW.”

It is anticipated the amendments will go before Parliament in the next session.

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