Home warranty insurers busy as building firms fold
Home warranty insurers in NSW were kept busy last week as a series of builders went into liquidation leaving more than 40 new homes uncompleted.
Three NSW building firms went bust between February 6-9, initiating claims for home warranty insurers CGU, Lumley and Vero.
Last week the NSW Office of Fair Trading announced Kingstone Homes had entered administration, with 33 homes under construction on the Central Coast and Sydney. Vero is the builder’s home warranty insurer.
Nine more consumers are affected by the collapse of Iconique Designer Homes. Parent firm Tsurami was placed in liquidation on February 6. Lumley is the home warranty insurer for the failed company.
Pacific Blue Homes was the third company to cease trading in a February 6 announcement from the NSW regulator. Its home warranty policy is underwritten by CGU and two consumers are affected by the closure.
Vero Communications Manager Sue Repanellis says the insurer has commenced its insolvency procedure in the Kingstone case.
“As the home warranty insurer we need to be directed by the appointed administrator before we can respond and will work closely with them to ensure that a quick resolution is found for homeowners,” she said. “That is our first priority.”
NSW home warranty insurance pays up to 20% of the contract value of a new home to a maximum of $300,000 for incomplete or defective work. Claims are contingent on the builder’s death, disappearance or insolvency.
Three NSW building firms went bust between February 6-9, initiating claims for home warranty insurers CGU, Lumley and Vero.
Last week the NSW Office of Fair Trading announced Kingstone Homes had entered administration, with 33 homes under construction on the Central Coast and Sydney. Vero is the builder’s home warranty insurer.
Nine more consumers are affected by the collapse of Iconique Designer Homes. Parent firm Tsurami was placed in liquidation on February 6. Lumley is the home warranty insurer for the failed company.
Pacific Blue Homes was the third company to cease trading in a February 6 announcement from the NSW regulator. Its home warranty policy is underwritten by CGU and two consumers are affected by the closure.
Vero Communications Manager Sue Repanellis says the insurer has commenced its insolvency procedure in the Kingstone case.
“As the home warranty insurer we need to be directed by the appointed administrator before we can respond and will work closely with them to ensure that a quick resolution is found for homeowners,” she said. “That is our first priority.”
NSW home warranty insurance pays up to 20% of the contract value of a new home to a maximum of $300,000 for incomplete or defective work. Claims are contingent on the builder’s death, disappearance or insolvency.