Insurance cover for delayed handover
June 24, 2019
HIA has noticed that more clients are delaying the handover process by refusing to take possession of the property. A consequence of these delays is that builders continue holding the properties way past the deadline of their Contracts Works insurance.
Contracts Works Insurance is required in most of the HIA’s major domestic building contracts. This policy protects the builders and owners from any liability for physical loss, destruction or damage to the building works. The policy is required to last from when the builder takes possession of the property to when it is handed back to the client.
However, most Contract Works insurance packages run out when the Certificate of Occupancy (COO) is issued, or when the building work is completed. Therefore, if the owner refuses to accept handover after the completion notice or certificate of Occupancy is issued, the builder will still have possession of the property after their insurance policy has lapsed. This means that builders will have no insurance cover if the house is damaged in this period of time.
HIA encourages builders to check how long their insurance policies last for and if these policies can be extended before they lapse. If members are interested in obtaining more information about possible options to manage this issue that can contact HIA Insurance or their insurance broker.
For further information, please contact Workplace Services on 1300 650 620.