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 Type Current Rates until 2/10/18 Rate Increase New Rate from 2/10/18  Minimum Base Premium
C01 New Single Dwelling Construction 0.66% 44% 0.95%  $200.00
C02 Multiple Dwelling Alterations / Additions – Structural 0.58% 0% 0.58%  $200.00
C03 New Multiple Dwelling Construction <3 Storeys 1.72% 0% 1.75%  $200.00
C04 Single Dwelling Alterations / Additions – Structural 0.58% 5% 0.67%  $200.00
C05 Swimming Pools 0.66% 2% 0.67%  $200.00
C06 Single Dwelling Renovations – Non Structural 0.34% 6% 0.36%  $200.00
C07 Other 0.34% 21% 0.41%  $200.00
C08 Multiple Dwelling Renovations – Non Structural 0.34% 0% 0.34%  $200.00
C09 New Duplex, Dual Occupancy, Triplex and / or Terrace (Attached) Constructions 1.72% 46% 2.50%  $200.00

Regional

Construction Type Current Rates until 2/10/18 Rate Increase New Rates from 2/10/18  Minimum Base Premium
C01 New Single Dwelling Construction 0.53% 44% 0.76%  $200.00
C02 Multiple Dwelling Alterations / Additions – Structural 0.46% 0% 0.46%  $200.00
C03 New Multiple Dwelling Construction <3 Storeys 1.38% 0% 1.38%  $200.00
C04 Single Dwelling Alterations / Additions – Structural 0.46% 5% 0.49%  $200.00
C05 Swimming Pools 0.53% 2% 0.54%  $200.00
C06 Single Dwelling Renovations – Non Structural 0.27% 6% 0.29%  $200.00
C07 Other 0.27% 21% 0.33%  $200.00
C08 Multiple Dwelling Renovations – Non Structural 0.27% 0% 0.27%  $200.00
C09 New Duplex, Dual Occupancy, Triplex and / or Terrace (Attached) Constructions 1.37% 46% 2.00%  $200.00