Tasmanians building their own home are set to have greater financial security with the reintroduction of a Home Warranty Insurance Scheme on its way.
The scheme is one step closer with a Request for Tender for the Home Warranty Insurance Provider now open for applications.
Minister for Small Business and Consumer Affairs, Michael Ferguson, said the Home Warranty Insurance Provider will be responsible for delivering the Government underwritten element of the Home Warranty Insurance Provider Scheme.
"We want to see Tasmanians secure the dream of home ownership without the threat of losing their money during the building process," Minister Ferguson said.
"Under the HWI scheme, building contractors will be required to purchase a Home Warranty Insurance policy, with the homeowner named as the beneficiary, for each residential building contract exceeding $20,000. As well as new dwellings, this includes additions and substantial alterations.
"A home is often the largest and one of the most significant investments many Tasmanians will ever make and the Government's Home Warranty Insurance scheme will provide important protections to ensure that homeowners are covered for loss caused by incomplete or defective building work should unforeseen circumstances occur, such as where their builder has died, disappeared or become insolvent."
The scheme will provide a mandatory, last resort scheme for residential building work that requires builders to take out home warranty insurance for the benefit of a homeowner, and importantly, successors in title for the duration of policy coverage.
The insurance cover for homeowners will be for the loss of deposits, non-completion and defects, subject to various financial caps where a builder has died, disappeared or become insolvent.
Minister Ferguson said as part of the 2030 Strong Plan for Tasmania's Future, the Tasmanian Liberal Government is protecting the interests of consumers purchasing or building a home in the Tasmanian building market, and the reintroduction of the Home Warranty Insurance scheme will provide important protections to homeowners.
The Request for Tender opens on Saturday 31 August 2024 and closes on 16 October 2024.
The details of the tender can be found on the Tasmanian Government Tenders website at www.tenders.tas.gov.au
It is expected that the Home Warranty Insurance scheme will come into effect mid-2025.
