From 1 October 2022, icare HBCF will be introducing new Construction Types, with Premiums also changing to align with these new categories.
What’s changing?
icare HBCF will be reducing the number of Construction Types from nine to five. In addition, structural and non-structural categories will merge, and the use of land title as a basis for classifying construction types will cease.
It is intended that these changes to Construction Types will:
- simplify the way HBCF premiums are calculated
- standardise descriptions of Construction Types and building classifications
- improve how premiums are regulated for different types of construction projects
- result in a fair allocation of the premiums for insuring different types of work
- distribute the risks and costs more evenly across different types of projects
- make the pricing process more transparent for builders and homeowners
Premium rates for H0 Construction Types effective 1 October 2022
The tables below show the new construction codes and premium rates.
HBCF Premiums are to be calculated based on the building contract value only. The cost of the HBCF insurance (being the premium and any applicable taxes and insurance intermediary fees) is to be excluded when submitting a project application in HBCF systems.
Metro Base Rate
Rural Base Rate
Note: Rates in the table above are for rural areas A 20% discount applies.
HBCF Premium Calculator has been updated
icare HBCF have updated the premium calculator on their website to now include the new rates so you can forecast pricing when it comes into effect on 1 October 2022.
Submissions Cut-off Date
If you would like to secure the current rates for your next project you have until 5pm 28 September 2022 to get your submissions in. Following the introduction of the new Construction Types the current rates will only apply to policies that were issued on or before 30 September 2022.
We’re here to help
If you would like any further details on these changes or the new rates, you can email us at team@hbwsolutions.com.au or call us on 02 8075 0975.
