The NSW Government is on track to transition to a new, Government–underwritten home warranty insurance scheme on July 1, with QBE Insurance (Australia) Limited and Calliden Insurance Limited being appointed to act as insurance agents.

The announcement follows the introduction of new laws supporting home builders, renovators and the residential construction sector.

The NSW Self Insurance Corporation Amendment (Home Warranty Insurance) Bill 2010 provides the NSW Self Insurance Corporation (NSW SICorp) with the necessary powers to operate the Government-underwritten home warranty insurance scheme.

“The NSW Government is establishing robust insurance arrangements to protect homeowners and the 250,000 jobs in our $20 billion residential building industry,” NSW Treasurer Eric Roozendaal said.

“Contracts have been awarded to QBE and Calliden following an extensive tender process.

“These companies have extensive expertise in home warranty insurance and operate in other states in Australia.

“We are working closely with them to ensure the handover from 1 July goes smoothly.

“This ensures builders can continue to obtain home warranty insurance on behalf of consumers with the reassurance the insurance market will not collapse around them.”

Fair Trading Minister Virginia Judge said home warranty insurance is mandatory in NSW for all home building work valued at more than $12,000.

“It provides an important safety net for consumers, providing people building or renovating their home with up to $300,000 in cover,” Ms Judge said.

“The Government has taken decisive action to ensure builders can get on with the job of constructing and renovating homes and give consumers peace of mind.

“We can now provide a smooth transition to the new arrangements and provide NSW families with peace of mind.

“The new scheme provides greater certainty for builders and consumers alike.”

Chief Executive Officer of the NSW Master Builders Association Brian Seidler welcomed the announcement.

“The MBA has always supported a return to government underwriting of the scheme and we’re pleased the government is now in a position to implement the new scheme arrangements from 1 July.

“It will give the stability that builders are after from the scheme”.

Any cover that has already been issued by insurers will remain in force for the duration of the policy with the new scheme coming into effect from 1 July 2010.

Information about the new arrangements can be found at www.homewarranty.nsw.gov.au or by calling the NSW Government Contact centre on 133 NSW or 133 679.

Builders should also contact their insurance broker who can provide additional information regarding specific circumstances.

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