New South Wales Consolidated Acts

HOME BUILDING ACT 1989 - SECT 103B

103B Period of cover

(1) A contract of insurance must provide insurance cover for loss arising from non-completion of the work for a period of not less than 12 months after the failure to commence, or cessation of, the work the subject of the cover.

(2) A contract of insurance (other than a construction period insurance contract) must provide insurance cover for other loss insured in accordance with this Act for a period of not less than--

(a) in the case of loss arising from a major defect in residential building work (within the meaning of section 18E)-- 6 years after completion of the work, or

(b) in the case of any other loss--2 years after completion of the work.

(2AA) A construction period insurance contract must provide insurance cover for loss insured in accordance with this Act for a period of not less than 12 months after the failure to commence or cessation of the work the subject of the cover.

(2A) However, the Authority may, by notice published in the Gazette, give written approval for a contract of insurance, or for a class of contracts of insurance, to provide insurance cover for a shorter period to the extent to which the insurance cover applies to loss in relation to specified work or materials.

(2B) Subsection (2) is subject to any variation specified in the regulations as to the period for which insurance cover must be provided.

(3) This section is subject to any limits set out in the regulations as to the period within which a claim must be made.

(4) This section is subject to any provisions in regulations made for the purposes of section 103 relating to professional indemnity insurance.

(5) A contract of insurance must contain a provision to the effect that the insurer is not entitled either to refuse to pay a claim under the contract of insurance in relation to work done after a contract has commenced, or to cancel the contract of insurance, on the ground that the contract for the work or supply to which it relates was entered into before the period of insurance commenced if a certificate evidencing insurance has been given or the insurer has otherwise accepted cover.