The NSW insurance regulator has issued a penalty notice and 43 cautions over compulsory home building cover breaches. 

The crackdown relates to 557 home building projects that are all now properly insured, the State Insurance Regulatory Authority says.

SIRA is in the final stage of a compliance audit assessing whether builders of houses, duplexes and granny flats have appropriate cover. 

A final set of notices has been sent to 100 builders selected for the audit.  

“SIRA has so far identified 44 who failed to comply with some insurance obligations or did not provide requested information,” the authority said.

It will next examine insurance on low-rise apartment construction jobs, checking whether builders are accurately declaring the costs and paying correct premiums.  

SIRA says it will soon contact builders of selected projects to request relevant information.

It is an offence to make false or misleading insurance applications, and it may also constitute fraud under the Crimes Act.  

SIRA expects to contact 20 builders and says there is “no presumption of wrongdoing for builders selected for review”.