What Other Bathroom Renovation Companies Don’t Tell You ? This could save you $1000’s
Before you sign any contract or pay a deposit, be sure your bathroom renovation team or builder has a variety of insurance plans.
You could be held liable in a variety of situations if they don’t have one or more of these policies. For instance, if someone enters your home and is wounded as a result of the construction work, or if one of your builders or craftsmen is injured on the job.
The following are the essential policies that must be implemented:
The Home Building Compensation Scheme (HBC)
HBC cover protects NSW homeowners. Builders must get this insurance on a project-by-project basis for any work that costs more than $20,000 in total, including labour and supplies. Not all bathroom renovation companies and builders are eligible for the HBC insurance. When checking out their licence number on www.fairtrading.com.au you can also check if the contractor is eligible for home building compensation insurance, this will be noted under the condition section on the licence.
Homeowners can file a claim if their builder is unable to complete construction work or repair faults because they have gone bankrupt, died, vanished, or had their licence suspended for failing to comply with a court or tribunal decision to pay them.
Before you pay any money to the builder or tradesperson, including a deposit, and before they begin work on your project, they must show you that they have valid HBC coverage.
Home Building Compensation coverage is regulated by the NSW State Insurance Regulatory Authority (SIRA), and they have developed an online tool to check if your builder is covered.
Public Liability Insurance
Your builder or tradesperson should be covered by Public Liability Insurance in the event that someone is hurt as a result of the construction activity on your home.
If they don’t have Public Liability Insurance, you could be held liable as the homeowner.
This covers injuries to those who aren’t on the job and aren’t covered by Workers’ Compensation Insurance.
Workers’ Compensation Insurance
Workers’ Compensation Insurance assures that all workers on your renovations are insured by your builder in the event that they are injured while on the job.
You may be responsible for the costs of a claim if your builder does not have Workers’ Compensation Insurance. This is because, under the Workers Compensation Act of 1987, people working on your property are considered to be your workers in specific instances.
One thing to keep in mind is that a builder or tradesperson who does not operate under a trade or company name will be unable to obtain Workers’ Compensation Insurance. You should have your own minimum premium insurance in this instance just in case.
For further information about Workers’ Compensation Insurance or the names of companies that provide this sort of insurance, contact the NSW State Insurance Regulatory Authority.
Other Recommendations for Homeowners
When doing any type of construction job, it’s a good idea to:
- Before you sign a building contract, check with your home insurer and make sure everything is in written so you have a paper trail;
- Check to see if your house and belongings insurance covers damage or theft to your home while it is being built.
- Notify your lender of any construction activity, especially if you’re borrowing money to complete the job. They’ll very certainly ask to see a current certificate of insurance to ensure that you (and they) are covered.
- Make sure the builder’s name on the certificates matches the name on the building contract and the builder’s licence when inspecting insurance certificates provided by your builder.
- It’s critical to do some careful verification before signing contracts and beginning construction work to ensure that you’re covered and satisfied that you won’t be hit with unexpected and hefty fees.
Are you planning big changes to your Sydney home? The Fresher team is eager to put our years of knowledge to work for you in designing and building your dream bathroom, kitchen or laundry.
Ask us for a copy of our insurances and licences today!