Builders Warranty Changes
- marklivingston
- Jul 24, 2015
- 1 min read
Recent government announcements have reduced the number of Insurance Brokers able to offer this type of insurance. Previously over 400 brokers were involved in this form of insurance but this has now been reduced to only 60. This is part of a streamlining process of the state statutory authorities, which run these programs, in an attempt to reduce losses. Claims against these schemes continue to rise sharply in recent years.
All state governments run similar schemes which cover structural defects after completion of domestic dwellings, including houses units etc. Losses in these schemes continue to rise and the authorities continue to look for administrative savings instead of large premium increases. Insurance companies such as QBE and Calliden act as agents for the State governments and only about 15% of Broker have previously have operated in this sector. This has been reduced even further.
These brokers must now be qualified specifically to advice on this product and only those who have undergone specific training have been approved. It is hoped that this change to allow only experienced and qualified broker will also help streamline the administrative process and keep premiums down.
Livingstons, as part of the Westcourt Group, continue to offer this service as part of our overall service to the construction industry which includes Property Insurance, Liability Insurance for builders and Contract Works Insurance.
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