The PMC has discussed the pros and cons about buying new versus established properties. Here we explore a way you can minimise your maintenance costs in all new properties through statutory home warranty insurance.
WHAT IS STATUTORY WARRANTY INSURANCE?
Besides your cherished and loved ones, your property investment/s are one of the biggest assets which you will want to protect. When purchasing a new property be aware that it is mandatory for the builder to take out home warranty insurance to cover structural and non-structural defects for a period of 6 years 6 months.
Once building work is finished, the home warranty insurances may help if:
- the builder fails to rectify defects
- the builder becomes bankrupt or goes into liquidation
- the builder is in another country or deceased
- the building suffers from subsidence or settlement.
WHAT IS DEFECTIVE BUILDING WORK
Defective building usually falls into 2 categories:
- Structural – e.g. leaking roof, leaking shower, health and safety issues
- Non-structural – e.g. sticking doors or windows, minor cracking of plasterboard.
There is also the ability to justify associated consequential damage caused by the defective building work.
In order to successfully lodge a complaint for assessment of the defective building work, legislative time frames are in place.
1. Structural Defective Work – The owner can lodge a complaint within 6 years 6 months from when the work is completed and within 12 months of noticing the defect.
2. Non-structural Defective Work – Generally the builder can provide a 6 or 12 month statutory warranty from the date of practical completion for non-structural defects.
Typically, this is part of the contract conditions for new home construction. If the owner notices a defect within the warranty period, they can request (in writing), that the builder fix the defect.
DID YOU KNOW?