The Tasmanian Government is taking further action to strengthen protections for consumers with home warranty insurance to be reintroduced in Tasmania.
Home warranty insurance covers incomplete or defective building work in the event that a builder has died, disappears or becomes insolvent. This is a sensible measure to assist consumers in circumstances where this occurs.
The Department of Justice, in consultation with the Department of Treasury and Finance, will now develop a model for home warranty insurance in Tasmania.
This will include consultation with stakeholders, including industry and consumer stakeholders and engagement with the insurance industry, which will be completed as soon as possible.
This will complement the changes we are already progressing that reduce the cost of addressing building defects, by giving the newly formed Tasmanian Civil and Administrative Tribunal (TasCAT) the jurisdiction to handle disputes around these issues to make it simpler, faster and cheaper to resolve than formal court proceedings.
The Government recognises that building a home is the most significant investment many Tasmanians make, and this will ensure there are appropriate measures in place to protect consumers for the small percentage of building projects where things go significantly wrong.
The reintroduction of home warranty insurance will add to the range of protections that already exist under the building regulatory framework available to Tasmanians building homes.
Elise Archer, Minister for Workplace Safety and Consumer Affairs