Home Warranty Update
NSW PRICING
The new government Insurer, the NSW Self Insurance Corporation or SICORP has released new pricing effective the 1st of October for Home Warranty project applications that can be accessed via our office through the two remaining agents, QBE and Winsure (sub agent of Calliden).
Important points:
There will be one single rating structure for all Builders , no matter how big or how small, this structure will be provided via web based rating models, one of which will be uploaded onto our website shortly.
If the current premium being paid by a Builder is below the new price, then SICORP have capped any increase to 30% a year until this new rate is achieved. If the current rate being paid is above the new rate, the Builders price will drop.
A guide to how the new rating structure applies is as follows:
The rating is separated into the following categories and will be postcode driven (guide included in article)
Structural
Metro ‐ rate 0.720% inclusive of government charges eg $250,000 x 0.720% = $1800 plus any broker fee.
Regional ‐ 0.575% inclusive of government charges eg $250,000 x 0.575% = $1437.50 plus any broker fee.
Multi Units...
Non Structural...
Tips to make the transition into the scheme easy...
If you have any queries about the above, please contact your account broker or email us on customerservice@shcorp.com.au
About Savill Hicks - Builders Insurance Brokers
SHC is a national Insurance Brokerage built around innovative solutions. SHC recognised many years ago the need to have tailored products focusing on our clients individual needs and expectations.
Today SHC is renowned for providing professional expertise coupled with efficient and effective product delivery. SHC differentiates itself by going beyond traditional boundaries to help clients succeed. SHC was established in 1993 after initially trading as Savill Hicks & Associates from 1990.
As a result of its success SHC is now one of the leading insurance brokers in Australia, with its Construction Division’s expertise second to none. Based on its past performances and its commitment to the insurance industry, the company forecasts further significant growth as a result of the industry’s demands for its products and service. Focusing on a range of products such as owner builder insurance, corporate insurance, home warranty insurance and more, we have secured our position as leaders in our field.
SHC has been able to develop specialised relationships with some of Australia’s largest Insurers. These relationships allow SHC to provide products to the industry which cannot be accessed by any other broker nationally. SHC has also forged close working relationships with leading re-insurers as well as insurers, in addition to overseas partnerships that expand its reach beyond traditional brokers.
As such, SHC can provide stand-alone solutions for an insurance program – generally completely in-house. The company’s facilities in the provision of these products are second-to-none in quality and delivery.
Our core values set SHC apart. These values have evolved around 4 principles:
- Our core values are always maintaining a client focus. We recognize the needs of different client groups and our professional client managers specialise by product and client industry.
- Listening to our clients and working with them as a partner, we can best develop solutions that work seamlessly with their business. Only in this manner can we help clients uncover and mitigate risks, so they can continue to operate as an ongoing success and continue their "vision".
- The unwavering commitment to personal and professional integrity, ethics, honesty and fair dealing.
SHC's senior management team and Board embrace these principles. We have adopted strong corporate governance practices that reflect this commitment and ensure that our company is managed with integrity. - Product and Service innovation. We build on our strength and success by providing creative and resourceful solutions for our clients. The agility of SHC ensures our commitment to remain a market leader in the provision of risk management and product delivery.
Savill Hicks Insurance Brokers offers the following insurance products and more:
- Owner Builders Insurance
- Home Warranty Insurance
- Construction/Liability Insurance
- Tradesman Insurance
- Business Insurance
Contact our experienced brokers for more information on any of our builders insurance products : Call 1300 550 665 or email customerservice@shcorp.com.au
HOME WARRANTY
NSW Government Insuring.
The NSW State Government has issued a statement on the weekend that announces they will be underwriting Home Warranty insurance with effect July 1, 2010. This in effect finalises the privately insured scheme that is currently serviced by QBE, Vero and Calliden. We believe the decision was made on the back of the two withdrawing insurers CGU and Lumley, coupled with a possible withdrawal of a third insurer. We do not know many details at this point except for the following;
- The insurers will likely be changed to 'Agents' for the Government administering the scheme.
- CGU and Lumley clients will still require to be privately insured before July 1, 2010. Therefore all builders who currently do not have insurance will need to seek it quickly before the end of the year, as normal. Take advantage of SHC's simple, fast and friendly application.
SHC Assumptions
- The current distribution channels (Insurance Brokers) will not change. Should the NSW Government change this model it would be Home Warranty armageddon all over again (remember HIH? But much worse).
- Insurers between now and July 1, 2010 will increase premiums dramatically. The reason; they have to collect enough premiums to pay for all the claims for the next, statutory period of 6 years.
We will keep all information posted as we are updated.
