Making a claim under the Home Building Compensation Fund requires understanding its protections for NSW homeowners facing defective or incomplete residential building work. This fund, managed by icare, safeguards against builder insolvency, disappearance, or failure to complete projects over $20,000. Homeowners must act promptly within strict time limits to succeed.
What is HBCF?
The Home Building Compensation Fund (HBCF) provides mandatory insurance for licensed builders in New South Wales undertaking residential work valued above $20,000 (including GST). Under the Home Building Act 1989 (NSW), builders must obtain a certificate of insurance from icare before starting work or accepting deposits. This covers homeowners for major defects up to six years post-completion and other defects for two years.
When Can You Claim?
Claims arise from defective work, incomplete projects, or non-structural issues, but only trigger events qualify: the builder’s death, insolvency, disappearance, or inability to rectify despite reasonable notice. Homeowners cannot claim if the builder remains solvent and contactable—pursue them directly first. Loss must become apparent within policy periods, with notification often required within 12 months for incomplete work.
Steps to Lodge a Claim
Notify icare promptly via their website or forms, providing key documents. Include property details, the insurance certificate, building contract, defect descriptions, evidence of builder contact (e.g., letters, photos, reports), and settlement attempts. Submit within time limits; icare assesses and issues a determination letter outlining coverage. Seek legal advice beforehand to strengthen evidence.
After the Decision
If unsatisfied, appeal to the NSW Civil and Administrative Tribunal (NCAT), which can award higher compensation or rectify issues. For claim handling disputes, request an internal icare review first. Always check icare’s site for latest forms and processes to avoid denials.