Latest changes to HBCF | Home Building Compensation Fund (HBCF) | MBA Insurance Services (MBAIS) | Homeowners Insurance | Home Warranty Insurance New South Wales
Latest changes to HBCF reforms.
icare made some announcements that will result in changes to HBCF.
Here's what might affect you:
1. New base premium rates
HBCF have advised distributors that new base premium rates will be effective from 2 October 2018.
Full details of the new rates can be found here (please note: effective date is 2 October 2018 not 1 July 2018).
The biggest changes are to C01 – New Dwelling Construction and C09 – New Duplex, Dual Occupancy, Triplex and/or Terrace (attached) construction which will have base rate premium increases of 44% and 46% respectively.
2. Risk based premium weighting changes
icare have also announced changes to the following factors effective 2 October 2018:
- Adjusted Net Tangible Assets (ANTA) in entity. From 2 October 2018 ANTA will be based on the stand alone ANTA held in the entity and will not include the personal ANTA of the director.
- Period entity licence held and entity structure. The amount of discount/loading will be adjusted annually based on the anniversary of licence issue. Companies and Trusts will receive a greater annual benefit as compared to sole traders and partnerships
- Previous eligibility assessment more than two years ago. If a review has not been undertaken for more than two years, the premium weighting will be based solely on the period the entity licence has been held and the entity structure.
You will have received a letter from icare HBCF detailing the upcoming changes and your risk based premium weighting.
3. Accessing Existing Rates
HBCF have advised that there will be no grace period for the changeover to the new rates. Your policy will need to be paid and issued prior to 2 October 2018 for the old rates to apply.
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 Tuesday, 25th September 2018 with payment to be received prior to 2 October. If you are unable to submit the application to us by this date, you may be charged the new rates.
Please also be mindful that on the Friday (28/09/18) and Monday (01/10/18) prior to the rate change there is a public holiday in Victoria and New South Wales respectively. This will impact our ability to process last-minute project applications so we appreciate your assistance in submitting applications by the cut-off date.
4. Changes to our fee structure
Following the most recent changes to the HBCF base premium rates, MBAIS has released a new fee structure to reduce our percentage fee where the premium increases are impacting you the most:
|C01 New Single Dwelling||15%*|
|C02 Multi Dwelling A/A (Structural)||10%|
|C03 New Multi Dwelling||10%|
|C04 Single Dwelling A/A (Structural)||20%|
|C05 Swimming Pools||20%|
|C06 Single Dwelling (Non-Structural)||20%|
|C08 Multi Dwelling (Non-Structural)||10%|
|C09 New Duplex, Dual Occupancy, Triplex||7%|
* High value jobs may attract a capped fee
As always, you can rely on expert advice and support from our highly qualified and experienced specialist warranty team that sets the industry standard for service.
5. Project Applications & HBCF Online Portal Updates
icare have also released updated application and completion forms which must be used for all new project applications or completions.
For more information, talk to our specialist team call Ph: 1300 MBA NSW