ABC 730 Report Building Warranty Insurance

ABC TV 7.30 Report
May 21 2009 19:37 PM
Compere: Kerry OBrien

O'Brien comments by It Is compulsory law in MOST states for new home owners and anyone Undertaking residential renovations to more than $ 12, 000 to take out Home Builders Warranty Insurance Through Their builders. O'Brien how The limited coverage and only IS Provides protection in extreme Circumstances. Melbourne couple, Sonya and Deon Isaac Paid the builder of Their new home $ 300, 000 Before Discovering defects In The construction work. The Isaac's won against-the-year order builder in The Victorian Civil and Administrative Tribunal for $ 52, 000 plus Agreed Their Legal Costs. The builder Went Into The voluntary administration Allowing Isaac's to make a claim on Their Builder's Warranty Insurance, Which Is Triggered When a builder goes Into Insolvency, dies or Disappears. Insurance company, Vero Refused to Cover the Costs Isaac's legal Arguing it has nothing to do With The insurance claims. VCAT ordering assureur Agreed to Pay The Isaac's $ 52, 000. Sonya Isaac Says There Is Nothing In The Insurance Policy That States Legal Costs Associated with the builder Pursuing Are Not Covered. Home warranty insurance WAS Introduced After the collapse of insurance company, HIH in 2001. Victorian Government Has The Time Had To ATTRACT insurance companies Back Into The Building Sector by Reducing Risk and capping payouts. Phil Dwyer, spokesperson, Builders Collective says builders must have insurance to Operate. The NSW Master Builders' want taken away from Regulatory Control the Five private insurance companies selling $ 100m worth of premiums a year. The Housing Industry Association REPRIMANDS Flaws In The dispute resolution processes. HIA Is A partner join in Aust's Biggest Broker of Home Builders' Warranty Insurance. Up to 30 state and Fed Have Been inquiries set up to examine home warranty insurance. The figures released by The Financial Ombudsman last year found warranty insurance insurance Was The worst performing in the Country. Christine Milne, Greens Senator calls it a 'junk' product. A senate committee Rejected calls to Introduce a style QLD Government backed system to follow gold's lead and make a pile it voluntary. Vic Consumer Affairs Recently knocked Back the Isaac's request to fund year appeal to the Supreme Court.


Duration 8:58 mins.
Interviewee (s): Brian Seidler, Master Builders Association NSW, Chris Bowen, Assistant Federal Treasurer and Minister for Competition Policy and Consumer Affairs, Christine Milne, Greens Senator; Deon Isaac, home owner, Phil Dwyer, spokesperson, Builders Collective, Sonya Isaac , home owner, Stephen Smith, Lawyer
Subjects: Building warranty insurance; Housing - Australia