The ongoing Senate inquiry into home warranty insurance has sparked a verbal stoush between public and private providers of the product.

Last month executives of the Housing Industry Association (HIA) appeared before a Senate inquiry. HIA is a broker of privatised last-resort home warranty insurance together with joint venture partner Aon Australia.

A Hansard report reveals the HIA faced a tough inquisition, with Tasmanian Senator Christine Milne leading the attack.

“We have been unable to find anybody else except the HIA and the Insurance Council who thinks that ‘last resort’ does provide adequate insurance cover,” she told HIA executives.

The inquiry has highlighted the difference between last-resort privatised home warranty insurance and Queensland’s state-run first-resort home warranty scheme.

During the HIA hearing HIA MD Ron Silberberg claimed the Queensland scheme also requires personal guarantees from builders “so that in the event of a building company failure, the Building Services Authority [BSA] can pursue the personal assets of directors of the building company”.

“It would be interesting to ask Mr Ian Jennings, the GM of the BSA, if he advises builders in Queensland that their personal assets would be on the line in the event of a building company failing.”

But Mr Jennings told insuranceNEWS.com.au last week that Mr Silverberg’s statement is “not true”.

“In Queensland we don’t require a personal guarantee,” he said. “On an annual basis builders have got to meet financial requirements for licensing but we don’t require personal guarantees and the legislation also does not require them.”

The Senate inquiry will report its findings next month.