Latest changes to HBCF | Home Building Compensation Fund (HBCF) | Master Builders Insurance Brokers (MBIB) | Homeowners Insurance | Home Warranty Insurance New South Wales
Latest changes to HBCF reforms.
The HBCF Eligibility Review Process is changing for small and system reviewed small builders.
icare have confirmed that from 4 July 2022 the Eligibility Review Process is changing for small, and system reviewed small builders.
This new process will impact builders seeking or retaining an Open Job Value of $5m or less.
icare have developed a bespoke algorithm that will automatically generate an Eligibility Score for each builder and this score will determine the Open Job Value a builder is offered. The Automated (Builder) Scorecard Review (ASR) process will commence on 4 July 2022.
All small and system reviewed builders will transition to this new process over a three-year period. Please see below for when you may be required to undergo this new process:
There will be three new categories of builder:
- New Builders: Once the automated assessment process commences
- System Reviewed Builders: When their current Certificate of Eligibility expires
- Small Builders: When their 2022 PER is scheduled for submission
What are the changes?
There will now be three new categories of builder:
- New Builders will be granted a maximum of $1m in eligibility and will need to participate in the Building Contract Review Program (BCRP) to be eligible for an increase in eligibility.
- Tier 1 Builders (builders seeking less than $3m in Open Job Values) that undergo the process would be offered automated eligibility of $1m, $2m or $3m depending on their Eligibility Score.
- Tier 2 Builders (builders seeking between $3m and $5m in Open Job Values) that undergo the process would be offered automated eligibility of $3m, $4m or $5m. Noting, Tier 2 builders who do not utilise the $3m+ across 3 years will be moved to Tier 1.
Further detail of the new eligibility assessment process and the new eligibility manual for all builders will be available from 4 July 2022, on icare’s website.
icare have published FAQs to provide further detail on the changes.
What do you need to do?
If you have valid eligibility with us, you don’t need to do anything.
If your circumstances have changed or you have any questions, please contact us.
For more information, talk to our specialist team:
Ph: 1800 150 888