We are writing to you regarding icare HBCF planned changes to construction types and premium.
Please note that icare have placed an updated eligibility manual (v11) on the icare website which contains details of the new construction types to apply from 1 October 22. icare - Forms and Resources for Builders
The pending changes to construction types and premium are outlined below.
Construction code changes and Premium changes
Effective 1 October 2022, there will be two changes relevant to Home Warranty Certificates.
- The existing “C Type” construction codes CO1 to CO9 will be condensed into 5 “H type “ construction codes H01-H05. The H type codes will supersede the C type codes.
- New Premium rates will become effective.
Table 1 shows:
- Mapping between the existing “C Type” to H Type classifications (in col 1); and
- 1 October 2022 premium rates for Metro and Rural “H type” construction.
Table 1
Premium rates for H0 Construction Types effective from 1 October 2022
Metro Area Base Rate
Rural Area Base Rate
Please also note that:
- Project applications using the expiring ‘C type’ construction categories will not be accepted after the transition date.
- If an expiring construction type (C type) policy submission is quoted (premium priced on insurer systems) before the transition date, it can be finalised as a C-type after the transition date.
- Draft ‘C type’ submissions that were submitted prior to the transition date and have not been quoted by the transition date will have to be resubmitted under the new construction categories. Any such draft ‘C type’ submissions that have not been quoted will be removed from the system after transition to the new construction types.
- If a certificate was issued under a C type policy and a policy change request (i.e. a variation) is submitted after the transition date the policy will remain as a C type policy.
- Please note unless a premium is quoted on the insurer system by 30/9/22, the 1 October 22 rates will apply.
Table 2 below provides additional detail on H type construction codes
Table 2
Current Premium rates for C0 Construction Types
Following the introduction of the new H0 construction types outlined, the below C0 rates will only apply to C0 construction type policy change transactions that were quoted and bound on or before 30 September 2022
Current Codes (C type) and Metro Rates
Current Codes (C type) and Rural rates
Please get familiar with the construction types and premium changes over the next three months as you plan and price upcoming projects.
Remember to also refer to the icare HBCF Builder Self Service Portal to determine the applicable premium loading or discount, particularly when quoting client projects.
Forms and Documents
Please ensure that you refer to the icare hbcf website for current and valid versions of forms and documents as these items can change from time to time. icare- Forms and Resources for Builders
Icare hbcf requires that only current and valid forms can be used for processing (e.g. eligibility applications, project applications and Project Completion Forms)
Fact Sheets
Please note that icare has produced two new Fact sheets to assist builders understand HBC insurance, HBCF eligibility assessments, and help the transition to the new Automated [Builder] Scorecard Review (ASR) eligibility assessment process, starting on 4 July 2022. Fact Sheets can be found at icare - Forms and Resources for Builders
icare - Forms and resources for builders
Contact us
Should you have any questions or do not currently have access to the icare HBCF builder self service portal, please contact us at your earliest convenience.
T: 1300 659 174
E: homewarrantynsw@shcorp.com.au
