Tasmania plans to reintroduce home warranty insurance in response to concerns about a lack of consumer protections, after a previous scheme in the state was abolished in 2008.

Workplace Safety and Consumer Affairs Minister Elise Archer says a model is being developed by the Department of Justice and Treasury and Finance. Consultations are set to be held in coming months with industry, consumer stakeholders and the insurance industry.

The Government last week said that, in the meantime, it would develop a financial support package to assist people affected by the failures of Tasmanian Constructions, trading as Hotondo Homes, and Inside Out Constructions.

“Once implemented, home warranty insurance will provide Tasmanian property owners with greater protection when building a home,” Ms Archer said.

“However, we recognise that more needs to be done to help those affected by the recent failures, and it is our intention that the financial support package will operate similarly to home warranty insurance, if it was already in place.”

Tasmania is the only state without home warranty insurance, which covers incomplete or defective work when a builder has died, disappeared or become insolvent.

The previous scheme was ended after the Labor government said in 2008 that it did not offer value for money for consumers.