Why is it being “re” introduced?
- Tasmania became the only State without some form of compulsory home warranty insurance (HWI) after the previous scheme was abolished in 2008.
- Home purchasers and contractors had become increasingly critical of the value of the HWI policies with the increasing costs of HWI premiums.
- Recognising that building a home is a significant investment many Tasmanians make, the Residential Building (Home Warranty Insurance Amendments) Bill 2023 (Bill) is proposed to strengthen protections for consumers.
How does the proposed Bill protect you?
Impact on you when the Bill is put into practice?
- Property owners with building works currently underway will be given an opportunity to purchase an equivalent level of cover.
- It will be a requirement for a builder to purchase HWI insurance on behalf of the property owner prior to commencing building works.
- This means that for property owners with current residential building work projects underway, they remain exposed to the risks associated with the death, disappearance or insolvency of their builder.
What can you do?
- Keep a look out for any updates on the proposed Bill by the Tasmanian Government.
- Review your current circumstances to consider whether you are well protected.
More information
If you would like more information about this article, please contact:
Mahum Akbar
Lawyer
T: (03) 6235 5119
E: makbar@pageseager.com.au
Daniel Morgan
Principal
M: 0438 436 968
E: dmorgan@pageseager.com.au
Published: 22 February 2024
