The WA government has reached an agreement with Nicheliving that provides a “pathway” for the builder’s customers to access home indemnity insurance for their unfinished properties.

Under the deal announced last week, the Perth builder has accepted the Building Services Board’s July decision to refuse to renew its building contractor registration on financial grounds.

The builder’s agreement not to appeal against that decision means more than 200 clients can finally start or continue claims through their home indemnity policies and appoint a new builder, the government says.

As part of the agreement, the government has waived Nicheliving’s insurance liability through the home indemnity insurance policy.

Home indemnity insurance is compulsory for building work in WA valued at $20,000 and above, and is designed to protect homeowners against financial loss if a builder cannot complete work or meet a valid claim for faulty or unsatisfactory work because of death, disappearance or insolvency.

QBE is the approved provider of the insurance in the state.

State Commerce Minister Sue Ellery said: “This agreement provides relief for more than 200 homeowners, who now have a clear path for accessing compensation through home indemnity insurance and completing their home builds with other builders.

“Nicheliving customers should now contact insurer QBE for assistance with lodging their insurance claims and finding a new builder to complete their homes.”

Local media reports say about 200 customers, including some who signed contracts dating back to 2019, are waiting for their homes to be finished.