Home Warranty Insurance Vic. Don’t be too precious. Robust Defects Report saves Owner Builders money and worry.
Defects Report sounds terrible particularly now selling your home and you know in your mind, there are no defects. Right? No, wrong!
Defects Report is an owner builder’s best friend and saviour during the home warranty period. There is no better tool or legal argument than a robust Defects Report. We tell you why you should select your Defects Report provider carefully and whatever, don’t rely on insurance salespeople to make recommendations. They are commission driven, and in most cases are unqualified to do so.
Firstly Home Warranty Insurance is dependent on current Defects Report. There is no way around this important element of this insurance. A Defects Report (also known as a 137B Report), has a life span of 180 days only, and should address all work regardless of value, including extensions, renovations, garages, decking, swimming pools, sheds, verandas etc.
This Report forms part of your Section 32, Contract of Sale documentation, and its’ purpose is to identify and record any defects in workmanship or materials, as well as the condition and status of any incomplete works. The purchase of your home will rely on this document during the Home Warranty Period, to determine whether future defective structures and other elements such as leaking pipes, lack of adequate drainage or dampness is claimable and chargeable back to the original owner builder. Imagine selling your home, and then up to 6 years into the future the purchaser may make a claim on you! It’s for this very risk, your Defects Report will be your insurance. Quality, registered and insured Defects Reports Practitioner and Inspector will require the following supporting documentation to complete and attach to their work. Collate your house plans, soil reports, all mandatory inspection approvals that were issued during your construction process, any structural engineering reports. Your Certificate of Consent, Building Permits, including any amendments, Occupancy Permit and Final Certificate of Inspection. You should provide Certificate of Water Proofing, Termite Report (if required), and Electrical and Plumbing Certificates. The Inspectors will require under floor access and roof cavity access. The Defects Report process is approximately 3-5 day process, so plan ahead and don’t be panic by time and then forced to choose without appropriate checks such as, statutory Victorian registration number, professional indemnity insurance certificate of currency and experience.
Under the Victorian Building Act 1993, Section 137B, a Defects Report can be as light as a one-page document, but if you are dependent on findings of this Report for up to the next 6 years or so, one page does not make the cut’’, no matter how small the owner builder project is defined. From an insurance underwriter perspective, one page’’ simply cannot provide adequate information to determine the best Home Warranty solution for the vendor – you, the owner builder.
Getting started – Home Warranty Application Form request here or call 1300 798 991 (24/7)
This post was written by Technical Underwriting Centre