iCare announces 1 July 2018 HBCF Premium Increase

Published: 28/06/2018

iCare announces 1 July 2018 HBCF Premium Increase

iCare HBCF have announced an increase on HBCF premiums effective 2 October 2018, this increase is in line with the previously announced reforms to take the Home Building Compensation Fund to a sustainable basis.


Determining the premium applicable

  • You will need to disclose the actual cost of insurance to your client in your contract with them.
  • Just using an estimate previously saved from the HBCF pricing calculator will not be enough.
  • The actual cost is the amount you pay when you purchase the premium, this amount may differ depending on whether you purchase the insurance before or after 1/07/2018.
  • iCare HBCF will allow a "Grace Period" when they have received the submission for the project in the Builder Portal or via your Broker and the submission has proceeded through the risk management process before midnight 30/06/2018, and, the policy is issued prior to midnight 30/07/2018.

How can I calculate my new premium?

Builders can check premiums via the online calculator at: www.icare.nsw.gov.au/premiumcalculator/.

What are the new premium rates?

Base Rates to 30/06/2018 Exc. GST & Stamp Duty Base Rates from 01/07/2018 Exc. GST & Stamp Duty
Construction Type Metro Rural Industry Av. Policy Increase % Metro Rural Industry Av. Policy
C01 - New Single Dwelling Construction 0.66% 0.53% $3,267 44% 0.95% 0.76% $4,028
C02 - Multiple Dwelling Alterations/Additions (Structural) 0.58% 0.46% $1,562 0% 0.58% 0.46% $1,562
C03 - New Multiple Dwelling (Unit) Construction (Up To 3 Storeys) 1.72% 1.37% $4,793 0% 1.72% 1.38% $4,793
C04 - Single Dwelling Alterations/Additions (Structural) 0.58% 0.46% $1,458 5% 0.61% 0.49% $1,471
C05 - Swimming Pools 0.66% 0.53% $408 2% 0.67% 0.54% $396
C06 - Single Dwelling Renovations (Non-Structural) 0.34% 0.27% $214 6% 0.36% 0.29% $210
C07 - Other - not included in other construction types due to unusual circumstances 0.34% 0.27% $216 21% 0.41% 0.33% $209
C08 - Multiple Dwelling Renovations (Non-Structural) 0.34% 0.27% $917 0% 0.34% 0.27% $917
C09 - New Duplex, Dual Occupancy, Triplex and/or Terrace (attached) Construction 1.72% 1.37% $4,793 46% 2.50% 2.00% $6,696

  • iCare will now merge previously separate factors of the period an entity's licence has been held and the structure of the entity; The level of discounting and loading impact has been refined to change for each year an entity's licence is held (previously a longer period was applied). This means an increased discount (or lesser loading) will apply on each anniversary of issue of an entity's licence (until the overall maximum cap is reached).
  • Sole traders and partnerships continue to receive a discount relative to companies and trusts. However, for each additional year an entity holds a licence, the level of reduction in loading or increase in discount will be higher for companies and trusts compared to sole traders and partnerships (until the overall maximum cap is reached). This change reflects the larger improvement in claims experience for an older company or trust compared to an older sole trader or partnership and a younger company or trust correction of an anomaly whereby a director’s assets have been included as part of the entity's assets when calculating the ANTA position for pricing purposes.

For further information about how the changes to HBCF will affect your business please contact the HBCF service team at Coverforce.

Find this article helpful? Click on one of the links below to share the content.

Are you looking for expert risk advice and great value cover for your business? Call us to speak to a Coverforce insurance broker today.

Our Insurance Brokers service clients throughout Australia, with key offices in Sydney, Melbourne, Brisbane, Adelaide and Perth.

Our global insurance network

Our brokers can access more than 100 insurers across the globe to find your business quality cover at the right price.

Insurer logo AIG
Insurer logo Allianz
Insurer logo Blue Zebra
Insurer logo CGU
Insurer logo CHU
Insurer logo Chubb
Insurer logo Dual
Insurer logo GIO
Insurer logo GT
Insurer logo Hollard
Insurer logo Liberty
Insurer logo Lloyds
Insurer logo Longitude
Insurer logo Mecon
Insurer logo Miller
Insurer logo NTI
Insurer logo QBE
Insurer logo Quanta
Insurer logo SUU
Insurer logo UAA
Insurer logo Vero
Insurer logo Zurich

Terms of Use  |  Legal Notices  |  Target Market Determinations  |  Contact Us  |  Copyright © 2018 Coverforce Pty Limited. All rights reserved.