The State Insurance Regulatory Authority (SIRA) wants feedback from builders, homeowners, financial service providers and other stakeholders on proposed home building compensation insurance standards in NSW.

The NSW Government is overhauling its current scheme and the new standards will determine how the home building compensation scheme operates from early next year.

Under the new scheme, builders and tradespeople are required to buy insurance when completing projects worth more than $20,000.

The State Government released two discussion papers last week asking which standards should apply to eligibility and premiums.

SIRA Acting CEO Carmel Donnelly says eligibility for home building compensation cover is a key issue for building and trade contractors.

“Eligibility determines the type, value and number of projects that building contractors can carry out,” she said. “The new guidelines will need to strike a balance between protecting homeowners from home building risks, keeping the scheme affordable and allowing builders to go about their business without unnecessary restrictions – building homes for the people of NSW.”

Stakeholders can provide input on how premiums for insurance or alternative indemnity products should be set under the new scheme.

From next year SIRA will regulate private providers that enter the scheme, in addition to the NSW Government’s insurance provider, icare HBCF.

To make a submission, visit here.