The Victorian and NSW governments have announced they will continue to support Dexta’s home warranty facility after June 30 until September 30.

New legislative changes relating to home warranty insurance will be introduced on July 1, a move which Dexta MD Ashraf Kamha hopes will entice more reinsurers and insurers back into the market.

Victorian Finance Minister John Lenders said the reform package will go a long way towards improving the long term viability of the states’ builders’ warranty schemes.

Mr Kamha said that the new rules give “a significant amount of protection” to the consumer and at the same time make home warranty insurance more attractive to potential insurers and reinsurers.

But there is concern that APRA’s new prudential standards, which also come into effect on July 1, will prevent others from becoming involved. “Insurers and reinsurers are exercising caution with regards to supporting lines of business that are viewed as marginal,” Mr Kamha said.