A recent ABC News report highlighted that five construction companies, on average, are going bust in Australia every day in one of the biggest downturns the industry has seen. Some Australians who signed contracts have lost tens of thousands of dollars and thousands of projects are at a standstill.
When your builder goes bust, it's crucial to understand your rights and the triggers that allow you to make a claim.
Triggers for Making a Claim:
If your builder has encountered any of the following circumstances, you may be entitled to make a claim:
Had their builder’s licence suspended for non-compliance with an NCAT or court order
If any of the triggers have been met, you can notify iCare of your intention to make a claim. Failure to notify and claim in accordance with the policy insurance periods may mean that your claim is not accepted.
What you are covered for:
The total limit (including non-completion of building work, defective building work, and any other costs covered by the policy) is $340,000 per dwelling with a sub-limit for in-complete building works of 20% of the contract price.
It is recommended by iCare to obtain legal advice prior to making a claim to ensure that you comply with the policy insurance periods.