Shadow Minister for Home Ownership and Housing Affordability, Jess Wilson, strongly advocates that Victorian home buyers must be front and centre in any reforms to Victoria’s domestic building insurance scheme.
The recent collapse of builder Porter Davis has exposed several shortcomings in Victoria’s domestic building insurance provided by the Victorian Managed Insurance Authority (VMIA).
Ongoing issues with fixed-price contracts and increasing costs have highlighted deficiencies in the levels of insurance coverage and the average wait time for the pay-out of a claim, which remains high at three years.
Ms Wilson said homebuyers caught up in the Porter Davis and other homebuilder collapses must be supported.
“The priority must be home buyers and ensuring any homes under construction can be completed as soon as possible. Victorian families cannot afford to leave their half-built homes in limbo for three years whilst they wait for their insurance to come through,” she said.
“The Andrews Labor government needs to focus on the immediate priority, how new builders can be encouraged to take over existing building contracts and complete homes under construction as a matter of urgency.
“The government, through the VMIA, may have a role to play to help alleviate the risk of new builders taking on existing contracts.
“Further, the state government must ensure claims relating to Porter Davis and other recent building failures are fast-tracked, so families can get on with building their dream homes.
“We need a strong and sustainable building insurance scheme that gives both home buyers and builders the protection and confidence they need.”
The VMIA was approached for comment.
