Home warranty insurance premiums to fall
NSW Treasurer Eric Roozendaal and Acting Fair Trading Minister Linda Burney today announced average home warranty insurance premiums will decrease under a new pricing structure released today.
The new structure will come into effect on October 1, 2010. "Average premiums will go down on October 1, the majority of builders will pay a lower premium rate under the new system and most small builders will experience a rate reduction," Mr Roozendaal said.
The new pricing structure is a key milestone in the NSW Government's takeover of home warranty insurance. The Government took over underwriting home warranty insurance on July 1, 2010 after private sector providers announced their exit from the market.
Acting Fair Trading Minister Linda Burney said the new pricing structure will be fairer and more transparent for both builders and homeowners.
"The new pricing structure will provide a level playing field for all builders and homeowners. The premium paid will be the same for a given job, no matter which licensed builder a homeowner chooses," Ms Burney said.
Builders who undertake more risky activities, such as multi unit dwellings, will attract a higher rate than less risky activities such as nonstructural renovations.
A premium calculation tool is available on the Home Warranty Insurance Fund website at www.homewarranty.nsw.gov.au so builders and homeowners can clearly and easily access premium rates.
Builders should also contact their insurance broker who can provide additional information regarding specific circumstances.
Further information is available on the website or by calling the NSW Government Contact centre on 133 NSW (133 679).
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