Vero has dismissed talk of a rift with the new owner of collapsed home building firm Beechwood Homes.

Reports last week claimed Beechwood’s new owner Vic Cavasinni was having trouble securing the mandatory home warranty insurance Beechwood formerly obtained from Vero.

Without the cover the completion of incomplete homes could have been jeopardised.

But a Vero spokesman denied reports the insurer had asked Mr Cavasinni for a $5 million indemnity that was said to involve family members outside the operations of the building firm.

“There’s no tension,” the spokesman told insuranceNEWS.com.au. “We were basically finalising his eligibility. It’s all sorted and building has commenced. It’s all systems go.

“Home warranty is a contentious topic and some people just want to get their name in the paper.”

Beechwood Homes is expected to complete up to 30 homes each month under its new management.

Former owner Larry King placed the company in voluntary liquidation in May when the firm had about 270 homes under construction. The company held a further 400 deposits.