The VMIA has made three important updates to builders’ home warranty insurance in Victoria effective from 1 July 2015.
The Victorian Managed Insurance Authority (VMIA) has made three significant changes to domestic building insurance in Victoria for the purposes of greater transparency as well as for protection for both homeowners and registered builders.
The first two changes make it easier to find out important information about registered builders and about property where building works have been carried out.
Domestic insurance search
The VMIA website now has a facility for anyone to conduct an online search to find out if a builder is eligible for domestic building insurance. You can access this search on the VMIA’s website. All you need to do is put in the builder/building company’s name and the search will show if the domestic building insurance is current.
This insurance is needed by all builders carrying out building work worth more than $16,000.00. You should not allow a builder to commence building work worth this amount or more until you have been provided with a certificate of insurance relating to your property or you may find that your building work is not insured in the event of incomplete or defective building works.
This search does not tell you if a builder is a registered builder. This can be ascertained by completing a search in the Toolbox in the top right hand corner on the Victorian Building Authority website.
Property Search
The VMIA website on the same page also provides the ability to check if a domestic building insurance policy has been issued in relation to a particular property but only for policies issued after 1 July 2015. This will show you:
- The policy number
- The name of the insured builder
- Whether any claims have been made under the policy
- The balance of the insurance remaining under the policy.
New basis for making a claim on insurance issued after 1 July 2015
Up until 1 July 2015, it was only possible to make a claim on building insurance policy if the builder had died, disappeared or was insolvent. But home owners may now also make a claim under their domestic building insurance if the builder fails to comply with a tribunal or court order. For this to apply:
- The order must be made in either VCAT or a Victorian court ie Magistrates, County or Supreme.
- The order must be a final order.
- The builder must fail to comply with the order for more than 28 days after the order is made.
- Any applicable appeal period must have expired.
This is a significant new avenue for redress by home owners against builders who fail to comply with court orders.
If you want to find out more, contact our building lawyers in Melbourne today.
This content is intended as commentary and should not be construed as legal advice.
For more information call Melissa Henderson on 03 9629 2211.
