How can my insurance broker assist me with this product?

We are able to provide insurance directly to builders or if you prefer, you may utilising an insurance broker to assist you. If an insurance broker is being used, with Assetinsure you must route all inquiries or alteration requests regarding the Letter of Eligibility or the Warranty Certificates issued via your insurance broker.

I have signed a building contract and have no more open jobs?

The Letter of Eligibility clearly stipulates how many open jobs (non-completed building projects) you can commence at any one time. It is important that you monitor how many non-completed projects you have purchased with Assetinsure. Please note that under the Building Act it is an offence to enter into a building contract without having Builders Warranty Insurance in place. Assetinsure is not obliged to increase your open job limit because you have signed a building contract without having the equivalent open job limit available under your facility with Assetinsure or if the signed building contract value exceeds the limits approved for your building entity by Assetinsure.

I want to sign a contract with a higher contract value than I am approved for?

Contact your broker or Assetinsure (if you are a direct client) with details of the building contract and ideally the building plans. We may ask for your previous work experience and third-party references regarding the building of high value homes, or projects exceeding your currently approved limits.

What is a multi-unit development under the Building Act?

A multi-unit development is a project that has 3 or more units/houses on one site or 3 or more units/houses on several sites but under one contract. These are deemed as developments under the Building Act 1993 (VIC) and do not provide non-completion cover/insurance for the developer/owner.

How to issue Certificates for multi-unit developments?

You are required to seek our approval for multi-unit builds comprising of 3 or more units prior to issuing warranty certificates. We require a copy of the building contract and building plan and specifications to assess the acceptability of the risk. If you issue multi-unit warranty certificates without our prior sign off, we may not renew your Letter of Eligibility. If we approve the development, it remains your obligation to ensure you have a sufficient number of open jobs remaining to issue the certificates and commence the work. Each unit under a multi-unit projects requires its own certificate. As an example, in order to proceed with a 3 unit development you need to ensure you have a minimum of 3 open jobs left under your Eligibility.

Keep your Letter of Eligibility up to date

It is important that all your details on your Letter of Eligibility are up to date. Some of these details will print on the warranty certificates you issue. Be aware the company details used in the building contract must match the company details on your Letter of Eligibility. Please contact your broker or Assetinsure (if you are a direct client) in writing and explain the changes you require. Depending on the required change we may require additional information before we action your request. Please allow some time for these changes to be made and refrain from issuing certificates during that period as they may not display the correct company information.

VBA notification to present updated Letter of Eligibility (LOE RENEWAL)

Please contact your broker or us as soon as you receive the request from the VBA to present an updated Letter of Eligibility to renew your builders licence. Whilst we will endeavour to deal with your request expeditiously to ensure your builders licence remains current, we will attend to the LOE renewal process on a first come first served basis and will not prioritise your request because you left it to the last minute.

When applying for an LOE renewal please ensure you have handed in all overdue occupancy certificates or provide progress updates for each project that is not completed on time.

It is an offence under the Building Act to operate without a current Builders licence. If your licence has expired, you are not permitted to continue operating as a builder, so we stress the importance of being diligent in the licence renewal process. The VBA are also mindful of this. This is why they send you your renewal notices 3 months in advance of the expiry date.

Change a company name and/or a company ABN

Please contact your broker or Assetinsure (if you are a direct client) with all the required changes and an explanation why the change is required. In line with the “phoenix company” legislation we will not facilitate the rebirthing of companies that have run into financial difficulties. Most often we will require you to sign a novation letter that stipulates that the new company will take on all liabilities of the former company that is being wound up or replaced. In general, once we agree to a change of company name, we will not allow for any further changes for the next 18 months.

How to correct a typo?

If you made a spelling mistake regarding the site address, building surveyor, home owner name or home owner email you need to contact your insurance broker or us in writing clearly explaining the changes you require to be made to the certificate. Please be aware that any required changes may take up to 10 days to correct once the request has been received by us. We recommend you take care to enter correct details when issuing a warranty certificate.

I need a copy of the certificate and or tax invoice

If you have misplaced your tax invoice or the copy of the warranty certificates that have been emailed to you, please contact your broker or us and we will send you a copy. Depending on our workload it may take 10 days to resend you the required documentation. We therefore recommend that you keep copies of the documentation emailed to you in a safe place.

Contract Value incorrect / Wrong site address?

Any corrections to the contract value or changes to the building site address require that you purchase a new certificate with the correct contract value and/or site address. Once that is done you can contact your broker or us with the details for both certificates and we will cancel and refund the incorrect certificate. The refund process may take up to 30 days to complete.

I want to cancel a warranty certificate

There are strict rules for cancelling a warranty certificate. The cancellation of the policy must firstly be approved by the policy owner. That is the person or business representative named on the certificate as owner. It will not be done purely at the request of the builder. The written statements required must advise on the following:-

– Has work commenced?

– Has part or all of the deposit been paid?

– What is the reason for cancellation?

– An undertaking by the owner that the policy will not be used for the original intended purpose. We can guide you on this as the case arises.

– Notation by the building surveyor of cancellation.

Once these statements are received we will consider the request.

Premium refund

When we agree to cancel a warranty certificate, we will arrange for a premium refund to the builder who paid for the certificate. The refund process may take up to 30 days to complete and an administration fee may be deducted to undertake this. Refunds will only be considered if all conditions for a cancellation are met including requesting a cancellation of the policies within 6 months of the issuance date. Refunds that do not meet these requirements will only be considered on a case by case basis

Home owner email

You are required to enter the home owner’s email address when purchasing the warranty certificate. We will automatically send a copy of the Policy Wording and the Warranty Certificate to the home owner who is the beneficiary of the warranty being purchased. Please ensure you enter the correct email addresses.

Building Size

When purchasing a Warranty Certificate, you will be asked to enter the square metre size of the building / unit you are building. We will use this to check the adequacy of the contract value entered. If we find that you are consistently understating the construction costs of your projects, your account may be suspended, and your Letter of Eligibility may not be renewed. We also advise that we will undertake random site inspections to ensure costings, contract values and progress is satisfactory.

Multi-unit applications

All multi-unit proposals, for 3 units or more, are to be approved by the underwriters prior to purchase of certificates via our online portal. For consideration, you will need to provide plans and contracts with each application.

Multi-unit Certificates

Ensure that an individual policy is issued for each liveable unit. This is a requirement under the Building Act 1993. This applies even if there is one contract to build multiple units. The cost of each unit needs to be calculated from the total contract amount.

Owners name on certificate

The owners name on the certificate must match that on the land title. We received regular request for amendments, because this information has not been verified before lodging the request.

Payment Schedules

Payment schedules with stage percentages break ups outside the standard Schedule 3 of Section 40 of the Domestic Building Contracts Act 1995 have to be pre-approved. That means that no payments above 65% of contract sum to lock-up stage will be accepted unless prior approval is obtained.

Project delays

Building performance is closely monitored as part of our ongoing due diligence, therefore it is critical that you inform us in writing of any considerable delays to commencement or ongoing progress of the projects. This will reduce delays when new projects or increases are requested.