We refer to our previous correspondence regarding the restructure of the HBCF premium rates which commenced in April 2019. At the time, the HBCF advised that Multi Unit premium increases would be staged in 4 tranches.
The 4th increase is due to be implemented on the 1st January 2021 in line with previous advice.
In addition to Multi Unit Premium increases that have been communicated over the prior 3 tranches, premiums for New Duplex/Triplex construction type including house and Granny flats will no longer be aligned with Single Dwellings after 1 January 2021. This is a surprise change noting in the August 2019 these premiums reduced considerably from Multi Unit pricing to single dwelling levels. The increases being applied are material due to adverse emerging experience/trends for C09 Duplexes, Dual Occupancy, Triplex and Terraces. It should also be noted where C09 construction types are community, company or strata titled, these will be issued as C03, Multi Units per the eligibility manual so please check with our team when quoting noting the constant changes in pricing for this category .
In summary, the following construction types are being affected
- 1 January 2021 for all multi-unit dwelling projects for construction types C02, C03 & C08
- 1 January 2021 for construction type C04 and C09.
The new rates and premium weighting factors will apply to all policies (certificates of insurance) quoted and issued from the dates above for the respective construction codes.
The premium calculators (icare website and the Builder Self Service Portal) have been updated with the new rates. If the date of policy issue is after 1 January 2021, the new rates will apply.
We have not been advised there will be any further scheduled pricing changes at this time after the 1/1/2021 and will communicate if this situation changes.
Link to new pricing
www.icare.nsw.gov.au/builders-and-homeowners/builders-and-distributors/p...
SHC are also excited to launch our new formal quote system enabling our clients to obtain a formal quote including broker fees providing accurate pricing and reducing administration when issuing policies. We will be contacting you in November to provide access.
Please do not hesitate to contact this office if you have any questions or we can be of further assistance.
T: 1300 550665
E: homewarrantynsw@shcorp.com.au
SHC Insurance Brokers
Home Warranty Team
