Domestic Building Indemnity Fund (HIH)
Who Can Claim
Please locate the appropriate category below to view eligibility requirements:
Note: This rescue package applies only to HIH/FAI policy holders.
PURCHASERS OF NEW HOMES
(built to their order)
MAY BE COVERED
- Where residential building work was completed or had a building permit issued before 30 April 2001 provided the contractor had a valid insurance policy* (either job specific or annual) and certificate in place covering the work at the time the work commenced.
- Where residential building work was commenced before
31 May 2001 but the homeowner was given a certificate of insurance on or before 30 April 2001. - Where a certificate of insurance was issued by a contractor under an unexpired HIH annual policy obtained on or before
15 March 2001.
* "valid insurance policy" - means a contract of insurance underwritten by FAI or HIH as defined by the House Contracts Guarantee (HIH) Act 2001.
PURCHASERS OF NEW HOMES BUILT AS “SPECS”
(constructed by the builder for resale on completion)
MAY BE COVERED
- Where a certificate of insurance was issued to the builder on or before 15 March 2001 by HIH (and/or its authorized agent or broker), or in the case of an owner/builder on or before 15 March 2001, and subsequently attached to the contract for the sale of the property; and
- Where a building permit was obtained before
30 April 2001; and - Where residential building works commenced before
31 May 2001.
PURCHASERS OF ESTABLISHED HOMES
(subject to major renovations or extensions completed after 15 March 2001)
Concerns raised by the collapse of HIH on 15 March 2001 are only applicable to established homes in very specific circumstances. If no renovations and/or extensions were carried out in the period HIH/FAI issued builder's warranty policies* or if any such renovations/extensions were not of a scale sufficient to require Home Warranty Insurance**, then the purchaser will not be eligible for relief under the rescue package.
Similarly, if any works within the period did require insurance but were covered by policies underwritten by insurance companies other than HIH***, then again the purchaser need not concern themselves further with the issues raised in this website as they are not eligible for relief under the rescue package. Please note, however, that you may be entitled to claim from the appropriate insurer. For the remainder, that is, purchasers of established homes, which underwent major renovation (or the prospective purchaser has cause to believe may have undergone major renovation) from 1 May 1996 to 31 May 2001 then purchasers and prospective purchasers are advised to make more thorough enquiries by checking with their local council if permits were obtained for building works during this period. The following information is provided as a guide.
* from 1 May 1996 – 15 March 2001
** less than $5,000
*** Some policies underwritten by HIH were issued under other
brand names via agents or brokers. If in doubt, purchasers are advised to confirm the status of any applicable policy by contacting:
- Master Builders Association of Victoria, (03) 9411 - 4555
- Australian Home Warranty, 1300 300 115
- Bovill Risk & Insurance Consultants, (03) 9859 - 7933
- Building Commission, (03) 9285 - 6400
COVERED
- Where residential renovation work was completed or had commenced on or before the date of the HIH collapse (15 March 2001) provided the Contractor had a valid insurance policy* (either job specific or annual) and certificate in place covering the work at the time the work commenced.
- Where residential building work was not commenced on or before 31 May 2001 but the homeowner was given a certificate of insurance by their builder on or before 30 April 2001.
- Where certificate of insurance was issued by a contractor under an unexpired HIH annual policy obtained on or before 15 March 2001
