Beechwood Homes owner ‘far from satisfied’ with insurer
New Beechwood Homes owner Vic Cavasinni says he is “far from satisfied” at being required to pay a substantial indemnity to home warranty insurer Vero.
Last week a Vero spokesman advised insuranceNEWScom.au the insurer had finalised home warranty insurance with Mr Cavasinni and work had recommenced on homes left partially constructed when the firm was placed in voluntary liquidation in May.
Mr Cavasinni confirmed those developments, but told insuranceNEWS.com.au on Friday he signed an indemnity transferring all Vero’s risk to his company. And he questions earlier claims by Vero that only 5-10% of builders are required to sign indemnities.
He said he agreed to pay the indemnity only “because I’ve given my word to the homeowners”.
Without it, building work would have been in doubt because home warranty is a mandatory insurance policy.
The Vero spokesman claimed last week there were “no tensions” between the parties.
Mr Cavasinni declined to say how much the indemnity is worth but denied earlier media reports that put the figure at $5 million. He agreed to buy Beechwood Homes as a going concern in July.
His decision to buy the business was a relief to the owners of 270 homes and 400 who had paid deposits.
A Senate inquiry into home warranty insurance continues, with builders and consumers still filing submissions.
Last week a Vero spokesman advised insuranceNEWScom.au the insurer had finalised home warranty insurance with Mr Cavasinni and work had recommenced on homes left partially constructed when the firm was placed in voluntary liquidation in May.
Mr Cavasinni confirmed those developments, but told insuranceNEWS.com.au on Friday he signed an indemnity transferring all Vero’s risk to his company. And he questions earlier claims by Vero that only 5-10% of builders are required to sign indemnities.
He said he agreed to pay the indemnity only “because I’ve given my word to the homeowners”.
Without it, building work would have been in doubt because home warranty is a mandatory insurance policy.
The Vero spokesman claimed last week there were “no tensions” between the parties.
Mr Cavasinni declined to say how much the indemnity is worth but denied earlier media reports that put the figure at $5 million. He agreed to buy Beechwood Homes as a going concern in July.
His decision to buy the business was a relief to the owners of 270 homes and 400 who had paid deposits.
A Senate inquiry into home warranty insurance continues, with builders and consumers still filing submissions.