What exactly is Home Owners Warranty ?

[Lickster]

I have just received a quote for roof repairs and have noted a levy for home owners warranty on top of the quoted price (about $2000 plus $350 levy).

I know this is compulsory above $12000 but wonder if it is necessary for a small job. I will just mention that this is a storm damage job that my landlords insurance will cover.

I haven't come across it before, but then again this is the first fairly major works job I've had on my properties. What does it cover ?

Advice please ?

 

[Sheryn]

Lickster


I do not know if it is compulsory for a small job - I would not think so.

Ring Fair Trading - not sure if they are the right department but they would know who to ring if they cannot answer question.

$12,000 seems to ring a bell as the amount HWI is required to be purchased.


Cheers
Sheryn

 

[NBS]

This is for Qld so you may have to check in your area.

What work is insurable?
The types of work that you have carried out that will require the payment of an insurance premium include:

The construction of a house, duplex, townhouse, villa unit, any residential unit (provided it is not a multiple dwelling of more than three storeys) and residential outbuildings (e.g. garage, pool change room, gazebo, shed etc)
Replacement of, or extension to, part or all of a residential building affecting internal or external walls (including windows, doors, roof, floor, foundations or ceiling, including re-fitting bathrooms and kitchens)

Amount payable is from $3301 - $20000 is $172.90.

Thanks
Brian

 

[Ausprop]

HOW is a load of rubbish and should be scrapped

 

[JoannaK]

HOW is a load of rubbish and should be scrapped

Couldn't agree more! Hopefully it gets a bit better with the NSW State Govt starting to underwrite in July.

Lickster - HOW covers you if the builder dies, disappears or goes bankrupt and he has finished the job but needs to return to fix defects. It is compulsory for any job on a residential property where the contract exceeds $12,000.

If your quote is for $2000 only then I would be questioning why he is putting a HOW levy on your quote.

BTW - I haven't heard of a HOW levy, so think it's a bit dodgy.

 

[craigb]

My understanding of home owners warrenty is its there to protect the home owner against major structual defects , and is claimed against when the builder can not be contacted or is unable to repair the problem,
It covers structural damage , not doors , or cornice cracks ,
the maximum amount claimable it 85k .and yes i think it is rubbish too!