The BSA Home Warranty Insurance Policy Conditions apply to residential construction work covered by the BSA Home Warranty Insurance Policy for which a premium has been paid, a contract entered, or work commenced (whichever is the earliest) on or after the date of commencement of the policy.
During the course of the contract BSA Home Warranty Insurance may assist if:
The builder becomes bankrupt or goes into liquidation
The builder fails to complete the contracted works for reasons that are not the consumer’s fault
The builder fails to complete the contracted works and those works are found to be defective
These types of claims are called non-completion claims. This means:
Where no works have commenced - BSA may reimburse you the deposit paid under the contract
Where work has commenced - BSA insurance may cover the completion of the works. Refer to During Construction - Problems Arising for information on the non-completion process
After completion of the work BSA Home Warranty Insurance may assist if:
The builder fails to rectify defects that have been the subject of a BSA Direction to Rectify, or for various reasons (eg. bankruptcy or liquidation, in another country or deceased), is unable to attend to rectification
The building suffers from the effects of subsidence or settlement
Additional Cover
If a claim is approved the policy may also cover the following:
Reasonable cost of alternative accommodation
Removal and storage costs necessarily incurred
Who is insured?
If you have entered into a contract for residential construction work with a licensed contractor
If you purchase a speculative home from a licensed contractor
If you have purchased a property that is less than 6 years 6 months old and defects appear after purchase or if insurable work carried out on the home has been insured - click here for more information
As with all insurance there are conditions and monetary limits - these are contained in the Policy Conditions booklet issued with the Certificate of Insurance.
BSA's Facts for Smart Building and Renovating booklet contains additional information - click here to access.
