Latest changes to HBCF | Home Building Compensation Fund (HBCF) | Master Builders Insurance Brokers (MBIB) | Homeowners Insurance | Home Warranty Insurance New South Wales

Latest changes to HBCF reforms.

MBIB are excited to announce our reappointment as 1 of only 9 brokers on the new HBCF distributor panel.

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1. Premium changes effective 30 July 2021

  • C01 New Single Dwellings premiums will reduce by 6%
  • C09 New Duplex, Dual Occupancy, Triplex and/or Terrace (attached) Construction premiums will reduce by 6%
  • C05 – Swimming Pools reduce by 9%
  • C04 Single Dwelling Alterations – Structural will increase by 9%
  • C06 Renovations- Non Structural increase by 9%
  • C07 – Other – not included above increase by 9%

J1825 MBIB HBCF Metro Area Base Rate 1 100

J1825 MBIB HBCF Rural Area Base Rate 2 100 

  • C03 New Multi Unit Development premiums will increase by 17%
  • C02 Multiple Dwellings Alterations/Additions- Structural premiums will increase by 50%
  • C08 Multiple Dwellings Renovations NON- Structural premiums will increase by 35%

J1825 MBIB HBCF Metro Area Base Rate 3 100

J1825 MBIB HBCF Rural Area Base Rate 4 100

Frequently Asked Questions

We have attached HBCF’s FAQs here along with the risk factors that can impact premiums here.

In order to facilitate a smooth transition to the new rates, any project applications for certificates that you wish to have processed under the existing rates MUST be received & quoted by Monday, 19 July 2021 with payment to be received prior to Wednesday, 28 July 2021.

If you are unable to submit the application to us by this date, you may be charged the new rates.


2. New HBCF eligibility / profile change form

icare HBCF have released version 5.0 of the New Builder Eligibility/Profile Change form which contains a minor amendment that relocates the applicant key contact details.

Please note: Only this form will be accepted from 1 March 2021


3. New project application forms

icare HBCF have released version 4.2 of the Multiple Dwelling and Non Multiple Dwelling project application forms. The forms include updated information to assist you in selecting the correct building construction type for your project.

Please note: Only these forms will be accepted from 1 March 2021


4. New completion advice form

Due to changes effective 1 March 2020 if the contract price exceeds 20% of the original value, builders are required to vary the certificate & pay any additional premium prior to closing the job off. Non-reporting and payment of variations may have an impact on your eligibility. Download the form here.

Please note: Only this form will be accepted from 1 January 2021


5. New eligibility manual

The biggest change for builders is how working capital is calculated. The Overhead Expense Day (OHED) calculation has been replaced with an Adjusted Current Ration (ACR) calculation which will usually result in a stronger working capital position for most builders.

Another change of note is the expansion of the fatal scenarios (factors deemed to make a builder ineligible for insurance) to include the scenario where a builder is ‘suspected of providing false or misleading information in connection with Eligibility and/or certificates of insurance without reasonable explanation’.

We’ve seen an increasing focus on projects that are past the estimated completion date. Under the new manual there is a provision for a Special Eligibility Review (SER) to be called where the insurer considers the circumstances to be significant. When completing the estimated completion date on the COI application form, remember to allow yourself sufficient time for any potential delays.

The new HBCF eligibility manual comes into effect from 1 March 2021


6. Project classification infographics and information

HBCF has prepared updated infographics for the construction types of primary and secondary dwellings. There is also a new information sheet defining structural and non-structural work for the purposes of the HBCF.

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HBCF Primary Construction Types Infographic


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HBCF Secondary Dwelling Construction Types Infographic


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Structural vs Non-Structural Construction Type Classification Information