Insurers : Not worth our while to cover builders

Insurance companies have backed away from the new Home Warranty Insurance Scheme in NSW saying it is not worth their while to insure builders who go broke or are sued for faulty work. This has forced the NSW State Government to take over polices from the 1st July.

When Beechwood homes collapsed in 2008, Vero, the insurer for the Beechwood group had to pay out hundreds of claims worth millions of dollars.

» Taxpayers forced to fund dodgy building claims – The Sunday Telegraph, 2nd May 2010.

1 Comment

  1. From the point of view of builders who consistently do high standard work, we are sick of paying $$$ to cover the bad ones out there. Surely there must be some way of weeding them out. Quite often it is the big companies who go down, and the smaller builder is paying insurance to cover them.

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