Home Building Tips for Builders in NSW
Changes to Home Warranty Insurance
Effective from 1 October 2010

The new government insurer, the NSW Self Insurance Corporation (or SICORP) has released new insurance pricing effective from 1 October 2010 for Home Warranty project applications that can be accessed through the two remaining agents, QBE and Winsure (a sub-agent of Calliden).

There will be one single rating structure for all Builders, no matter how big or how small.

If the current premium being paid by a Builder is below the new price, then SICORP have capped any increase to 30% a year until this new rate is achieved.  If the current premium being paid is above the new rate, the lower amount will apply.  A guide to how the new rating structure is to be applied is as follows:

The rating is separated into the following categories, and will be postcode driven:

Structural
Metropolitan – the rate is 0.720% of the contract sum, inclusive of all government charges (eg $250,000 x 0.720% = $1,800, plus any broker fee).

Regional – the rate is 0.575% of the contract sum, inclusive of all government charges (eg $250,000 x 0.575% = $1,437.50, plus any broker fee).


Multi Units
Metropolitan – the rate is 1.08% of the contract sum, inclusive of all government charges.

Regional – the rate is 0.863% of the contract sum, inclusive of all government charges.


Non Structural
Metropolitan – the rate is 0.50% of the contract sum, inclusive of all government charges.

Regional – the rate is 0.408% of the contract sum, inclusive of all government charges.

The minimum cost in applying for a certificate will be $191.84, plus broker fees.

At this stage, as it is not known how SICORP or their agents will communicate your individual pricing, please take a conservative approach in pricing future projects from 1 October 2010, based on the above calculations.