Home Warranty Insurance Refunds When Parting with Builder

Jackson on 22/08/2023 - 19:44

Hoping someone knowledgeable can help with what the situation is with getting a refund for home warranty insurance when parting ways with a builder. The builder wants to part ways without having built the project, but owes me money which he disputes, and is harassing me about providing him a letter dissolving the contract. I am not doing that as currently I am still working through my rights and what he owes me, so he's told me he's going to cancel the insurance and the money will not be refunded or available.

I have called iCare and got mixed information, but generally I was of the understanding that until I provide that letter the insurance will stand and therefore the money can be returned when the time comes. Anyone who has an idea how this works I would be grateful for the advice.

Home & Garden Insurance

Comments

  • boomramada on 22/08/2023 - 20:06
    -1

    but owes me money which he disputes

    Your chance of getting money of the builder would be ZERO based on correct market. Builder could declare bankruptcy.

    • Jackson on 22/08/2023 - 20:57

      It's not that much money, I don't think he'd declare bankruptcy over it unless he had a lot of other debts going

  • thatonethere on 22/08/2023 - 20:28

    maybe have to pursue with xCAT depending on your location to get the money back.

    • Jackson on 22/08/2023 - 20:57

      This is definitely an option, it's pretty open and shut, but I wonder if there's any obligations from the insurer's side since I paid them directly

  • frostface on 22/08/2023 - 20:59
    +1

    If it’s a serious amount of money you should consider legal advice. The builder is trying to get you to admit the contract is frustrated (your building contract will have a frustration clause), if you do, his obligation to refund money may be removed.

    • Jackson on 22/08/2023 - 22:45

      We used the standard NSW fair trading contract, not sure what frustrated means but he is supposed to be building a house and then stopped, and since had refused to refund money owed. I have sought legal advice and have someone working on it, but wasn't able to contact them today so figured I would post here

  • Pionee3r on 23/08/2023 - 00:09

    the only way a builder can cancel insurance is with your signature to end the contract so i wouldnt worry to much about that and it wouldnt be through icare it would be the insurance broker who is on your certificate of warranty

    • Jackson on 23/08/2023 - 01:26

      When I spoke to the broker they indicated that some people lose their insurance, but at the same time she was cagey about it. I felt like she wasn't really giving me a proper explanation of the reasons for it.

      The other question I have is how is this affecting him? Is it the case that it's frustrating him because he can't pick up another job due to the fact that his insurance cap is maxed out?

      And under what circumstance could a builder fairly cancel a contract on someone?

  • Lord Fart Bucket on 23/08/2023 - 07:50

    Is this a small builder? How many projects have they got going? Are you the only one this is happening to?

    • Jackson on 23/08/2023 - 14:07

      They have a few houses going, relatively small builder, don't know if it's happening to anyone else, not sure how I could find that out?

Login or Join to leave a comment
Login Join