Commerce Minister media statement – Insurance reforms to better protect home owners

Media statement from Commerce Minister, Hon Roger Cook MLAHome indemnity insurance reforms to better protect home owners affected by builder insolvencies Maximum insurance payouts will double to $40,000 for lost deposits and $200,000 for incomplete or defective works Home indemnity insurance is compulsory for residential building projects valued at $20,000 or more The McGowan Government has approved reforms to the State's home indemnity insurance scheme to double the maximum payouts to home owners.The changes mean eligible homeowners may be entitled to up to $40,000 for lost deposits, and up to $200,000 for incomplete or defective works in the event their builder dies, disappears, or becomes insolvent. The reforms aim to better protect home owners.Under the Home Building Contracts Act 1991, a builder must take out home indemnity insurance in the owner's name before accepting payment or commencing work for residential building projects valued at $20,000 or more.In most cases, the insurance policy must cover the construction period and six years from the practical completion date.The scheme changes will take effect as soon as possible.Comments attributed to Commerce Minister Roger Cook:"The McGowan Government is committed to assisting Western Australians building a home and protecting their investment."The changes to home indemnity insurance reflect current market values and challenges. We want to ensure that if a builder becomes insolvent, families are better protected and can finish their dream home.""Improved home indemnity insurance coverage will give prospective home buyers the peace of mind and the confidence to build, knowing that if things do go wrong there will be a much better safety net."<ENDS>Link to original State Government media statement: https://www.mediastatements.wa.gov.au/Pages/McGowan/2022/10/Insurance-reforms-to-better-protect-home-owners.aspx