FAQ’s from HBCF Website
What are the changes for Homeowners?
Two do-not-reply emails are automatically generated from CIMS and sent to the homeowners:
- When a certificate is issued containing the policy number, site address, builder’s company name. The email advises the homeowner to contact the builder direct to obtain their certificate of insurance or query the details if incorrect.
- When a completion certificate is received, confirming the start of the warranty periods.
Does the homeowner or anyone have access to the certificate details?
All certificates are published in the HBCF online Certificate Register. The following information will be displayed;
- Builder’s company name
- Property address
- Description of the works
- Premium amount.
How is the builder affected?
HBCF has listened to builder feedback and is taking this opportunity to change the eligibility limits calculation from traditional annual turnover to the number and value of “open jobs” under construction.
It is now the responsibility of the Distributor to inform the builders if a review uncovers concerns or under performance and ensure the builder takes measures to remedy the situation. This means conveying to builders all reasons and observations from IA or HBCF related to an eligibility or project application. It is the distributor’s responsibility to clarify with the IA or HBCF anything that is unclear. The Builder report generated from BEAT must be provided to builders.
Is the job limit based on number of projects, value of projects or combination of both?
The job limit is based on a combination of both number of open jobs and the total value of these projects. The eligibility criteria set in BEAT will directly feed into CIMS. If the eligibility criteria lapses because a review has not been completed the builder won’t be able to submit an application for a certificate of insurance.
Are site addresses validated in CIMS?
The site address details will verify against known address data to validate the address details. This ensures all property information issued on the certificate is as up to date as possible.
If the address has not been updated with then the most current address will be displayed on the certificate. At the time of entering the actual completion date the actual postal address is to be confirmed.
How will the project completion dates help determine the number of ‘open jobs’ allowable for each builder?
Calculations are based on some conservative assumptions of the estimated completion dates provided previously as the starting position of each builder’s utilisation and unused limits. For example, a builder who now builds value of $3 million houses with an average completion rate of 2 years will have a higher open job limit than a builder who does mainly $30K bathroom renovations which typically take a month.
How do you know when a project is due for completion?
The builder must submit a completion date declaration form once the final invoice has been issued to the client. The certificate of insurance is issued immediately the completion date is received and the warranty commences. An email is sent to the homeowner from CIMS confirming the commencement of the warranty periods.
Distributors are required to input the details of all builders’ completed jobs into CIMS. Actual completion dates will now be based on the builder’s declaration of delivering the completed job to the owners (practical completion) and managed by the distributor.
Once a builder has finished the job, issued the last client invoice and submitted the completion date to their distributor, they can then start their next job within their limits. If a project is not completed within the industry benchmarks it could trigger a review unless supported by a suitable reason. Project non-completion could trigger a review if the job is not completed within the industry benchmarks for a job typical of the size and duration.
Have the non-reviewed thresholds for builders changed?
The thresholds for non-reviewed builders will be a balance of the types of projects and would typically be:
- 3 projects and $2 million for single dwelling builders
- 1 project and $5 million for multi-unit builders.
When a small builder has currently two projects under construction to the total value of $760K and also has a two jobs or $1M in open jobs limit approved, can this builder undertake a third project for $200K?
No, the builder would need to either:
- complete one of the jobs before commencing the next, or
- apply for a revised eligibility profile.
The insurance agents have some discretion for minor abnormal delays in completing projects which can be reviewed on application from the distributor. Any discretion is temporary and does not permanently increase the eligibility profile.
How do I apply for a certificate of Insurance (CoI)?
There is both a new electronic and paper version Project application forms available. It captures more information on the type of dwelling being built. This ensures HBCF can identify the scope of the project being insured. The electronic form has drop down lists to select from based on the type of dwelling being built. The paper form has extra pages setting out relevant information on the type of project can be completed and submit electronically as well.
Taking into account the new business threshold requirements, larger Distributors can now enter into wholesaling arrangements with smaller Distributors, however, they remain responsible for the smaller Distributor’s actions. There are also Authorized Representative Networks that will offer a central facility.