New South Wales Consolidated Regulations

HOME BUILDING REGULATION 2014 - REG 62ZH

62ZH Requirements for alternative indemnity product cover for residential building work done under contract

(1) Despite any other provision of this Part, the alternative indemnity product cover in relation to residential building work that is required by section 92 of the Act, as permitted by section 104B of the Act, may be arranged by means of--

(a) one contract (a
"construction period alternative indemnity contract" ) that provides cover (by means of a specialised insurance arrangement) against--

(i) the risk specified in section 99 (1) (a) of the Act, and

(ii) the risk specified in section 99 (1) (b) of the Act in a case of non-completion of the residential building work, and

(b) another contract (a
"warranty period alternative indemnity contract" ) that provides cover (by means of a specialised insurance arrangement) against the risk specified in section 99 (1) (b) of the Act.

Note--: Combinations of contracts in which cover may be provided are set out in clause 62F.

(2) A warranty period alternative indemnity contract is not required to, but may, cover loss that arises from a breach of a statutory warranty in a case of non-completion of residential building work.

(3) A licensed provider is not required to, but may, provide both a construction period alternative indemnity contract and a warranty period alternative indemnity contract in relation to the same residential building work.

(4) Nothing in this clause requires a person obtaining cover for the purposes of section 92 of the Act, as permitted by section 104B of the Act, and who obtains cover for that purpose by entering into 2 contracts of alternative indemnity product cover as specified by this clause, to enter into both with the same licensed provider.