Changes To HBCF – Latest September 2018 Update

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iCare HBCF insurance is not financially sustainable and without reform, this will compromise its ability to protect homeowners now and into the future.

Premium prices have not kept pace with the insurance claims experience of the fund and pricing did not cover claims costs and other related expenses.

New Premium prices effective from 2nd October 2018
There are two initiatives being implemented from 2 October 2018 involving an increase in premiums for all categories other than the multi-dwelling (unit) and some enhancements to the risk based pricing regime.

The increases vary depending on construction type. The below table sets out the increase for each construction type. While the increase will vary depending on construction type the average will be approximately $418 per policy.

Metro

Construction TypeCurrent Rates until 2/10/18Rate IncreaseNew Rate from 2/10/18 Minimum Base Premium
C01 New Single Dwelling Construction0.66%44%0.95% $200.00
C02 Multiple Dwelling Alterations / Additions – Structural0.58%0%0.58% $200.00
C03 New Multiple Dwelling Construction <3 Storeys1.72%0%1.75% $200.00
C04 Single Dwelling Alterations / Additions – Structural0.58%5%0.67% $200.00
C05 Swimming Pools0.66%2%0.67% $200.00
C06 Single Dwelling Renovations – Non Structural0.34%6%0.36% $200.00
C07 Other0.34%21%0.41% $200.00
C08 Multiple Dwelling Renovations – Non Structural0.34%0%0.34% $200.00
C09 New Duplex, Dual Occupancy, Triplex and / or Terrace (Attached) Constructions1.72%46%2.50% $200.00

Regional

Construction TypeCurrent Rates until 2/10/18Rate IncreaseNew Rates from 2/10/18 Minimum Base Premium
C01 New Single Dwelling Construction0.53%44%0.76% $200.00
C02 Multiple Dwelling Alterations / Additions – Structural0.46%0%0.46% $200.00
C03 New Multiple Dwelling Construction <3 Storeys1.38%0%1.38% $200.00
C04 Single Dwelling Alterations / Additions – Structural0.46%5%0.49% $200.00
C05 Swimming Pools0.53%2%0.54% $200.00
C06 Single Dwelling Renovations – Non Structural0.27%6%0.29% $200.00
C07 Other0.27%21%0.33% $200.00
C08 Multiple Dwelling Renovations – Non Structural0.27%0%0.27% $200.00
C09 New Duplex, Dual Occupancy, Triplex and / or Terrace (Attached) Constructions1.37%46%2.00% $200.00