Builder's Warranty - What is the Current State of Affairs?

December 2009

QBE have been closely working with the Victorian Managed Insurance Authority to ensure there is minimal disruption in the Victorian building industry. They have announced the following facts regarding their transition of builders from CGU, Lumley, Vero and Calliden:-

  • All Lumley, CGU and Vero builders have now been transferred into the QBE system and will undergo a financial re-assessment in the next 12 – 18 months;
  • QBE will try to match as closely as possible your current premiums;
  • Calliden have announced they are withdrawing from the market effective 31st March 2011;
  • Calliden builders will be given a new QBE “E” category which effectively is a Category C + 20% premium;
  • QBE have not yet determined their timetable for re-assessment of all the new builders transferred to them but it is anticipated this will be a gradual process over the next 12 – 18 months.

BRIC is the only broker authorised by QBE to undertake the assessment of certain types of builders.

HOW WILL THIS AFFECT YOU?

Your file should already have been transferred to QBE. If you have not been advised then please contact your broker to make sure your file is being correctly managed. When you need to insure a job apply using the new QBE forms to your broker as per normal. You will need to check what premium applies with your broker. If your broker cannot help please contact BRIC.

QBE have not identified when your re-assessment will take place. If this is at a time which is inconvenient to you we are sure that QBE will try to work with you to ensure your eligibility continues, however this will not be indefinitely and you will ultimately have to be re-assessed. We strongly recommend that you take control over the timing of this re-assessment and request BRIC to undertake this NOW! We may be able to secure more favourable premiums following your assessment.

Get BRIC to undertake your re-assessment at a time that is convenient to you!

HOW DO I APPLY TO BE RE-ASSESSED BY QBE?

Complete their application form and forward this to QBE (via a Broker) together with a copy of your current Letter of Eligibility and the required attachments such as your financial accounts/tax returns, evidence of property ownership and references.

BRIC are the only insurance broker in Australia who have QBE’s authority to undertake the financial assessment and issue builders warranty insurance certificates from our own office on behalf of QBE. No other broker has this authority. Assessments are currently being processed by BRIC within 10 business days of our receipt of all required underwriting information.

When you deal with BRIC you are talking directly to the underwriter making the decision on whether or not your assessment passes and which premium category will apply to you. When you deal with another insurance broker they pass your information onto QBE who makes the decision and tells your broker who then has to explain it all to you.

 
 

BOVILL RISK & INSURANCE CONSULTANTS

Specialist Insurance Brokers