Beechwood: Vero contributes to completion of 900 homes
Home warranty insurer Vero has avoided a massive claim liability following last week’s sale of folded NSW building firm Beechwood Homes, but has agreed to contribute to the cost of finishing almost 900 homes.
Receivers Deloitte announced last week the sale of Beechwood as a going concern to homebuilder Resibuildco, which is owned by established NSW homebuilder Cavasinni Constructions.
That means construction will continue on homes that have sat idle since the May 13 collapse.
A spokesman for Vero – the Beechwood home warranty insurance carrier – told insuranceNEWS.com.au the insurer will step in to pay provisions for extra costs owners have incurred.
This includes property protection costs, additional rent and legal fees.
“We have been active for the past two weeks undertaking assessments of homes in advance of the sale,” she said. “Vero has agreed to contribute to Beechwood’s cost of finishing the homes.”
While Vero refused to disclose the amount it will contribute, the insurer said it will also provide fresh home warranty policies to customers of the re-established company at no cost to customers.
Deloitte ended a long wait for anxious homeowners by announcing last week’s sale, with the undisclosed deal including all assets of the company including existing land, buildings, contracts, intellectual property and copyright.
The news brought relief to 360 customers with unfinished homes and a further 580 who held plans after paying an initial deposit.
Resibuildco will continue to trade as Beechwood Homes.
Last resort home warranty insurance is contingent on the builder’s death, disappearance or insolvency, and in NSW pays up to 20% of the home contract price to a maximum of $300,000.
Receivers Deloitte announced last week the sale of Beechwood as a going concern to homebuilder Resibuildco, which is owned by established NSW homebuilder Cavasinni Constructions.
That means construction will continue on homes that have sat idle since the May 13 collapse.
A spokesman for Vero – the Beechwood home warranty insurance carrier – told insuranceNEWS.com.au the insurer will step in to pay provisions for extra costs owners have incurred.
This includes property protection costs, additional rent and legal fees.
“We have been active for the past two weeks undertaking assessments of homes in advance of the sale,” she said. “Vero has agreed to contribute to Beechwood’s cost of finishing the homes.”
While Vero refused to disclose the amount it will contribute, the insurer said it will also provide fresh home warranty policies to customers of the re-established company at no cost to customers.
Deloitte ended a long wait for anxious homeowners by announcing last week’s sale, with the undisclosed deal including all assets of the company including existing land, buildings, contracts, intellectual property and copyright.
The news brought relief to 360 customers with unfinished homes and a further 580 who held plans after paying an initial deposit.
Resibuildco will continue to trade as Beechwood Homes.
Last resort home warranty insurance is contingent on the builder’s death, disappearance or insolvency, and in NSW pays up to 20% of the home contract price to a maximum of $300,000.