Western Australian Consolidated Acts Western Australian Consolidated Acts (1) A policy of
insurance complies with this Division if —
(a) in
the case of residential building work to be performed by a builder on behalf
of another person, other than a developer, under a residential building work
contract, it insures that person and that person’s successors in title
against —
(i)
the risk of losing an amount paid by way of deposit under
the residential building work contract, up to a limit of $13 000 or such
other limit as is prescribed; and
(ii)
the risk of loss, other than indirect, incidental or
consequential loss, resulting from non-completion of the residential building
work,
by reason of the
insolvency or death of the builder or by reason of the fact that, after due
search and enquiry, the builder cannot be found;
(b) in
the case of residential building work to be performed by a builder on behalf
of another person (whether under a residential building work contract or not),
it insures that person and that person’s successors in title against the
risk of being unable to take advantage of an entitlement to, or to enforce or
recover under, a remedy under section 12A of the Builders’
Registration Act 1939 by reason of the insolvency or death of the builder
or by reason of the fact that, after due search and enquiry, the builder
cannot be found;
(c) in
the case of residential building work to be performed by a builder on the
builder’s own behalf, it insures the builder’s successors in title
against the risk referred to in paragraph (b);
(d) it
provides that claims may be made under it at any time before the expiration of
a period of 6 years from the day of practical completion within the
meaning of that term in section 11;
(e) it
provides for insurance cover of —
(i)
at least $100 000 or such other amount as is
prescribed; or
(ii)
the cost of the building work,
whichever is the
lesser;
(f) it
is issued by or on behalf of an insurer who is —
(i)
authorised under the Insurance Act 1973 of the
Commonwealth to carry on insurance business; and
(ii)
approved in writing by the Minister;
and
(g) it
complies with any other prescribed requirements.
(2) Subject to
subsection (3), where the policy of insurance relates to work described
in paragraph (b) of the definition of “home building work” in
section 3, the cost of the residential building work for the purposes of
subsection (1)(e) is only the cost of —
(a)
placing the dwelling on the land including siting, stumping and any other work
in connection with that placement; and
(b) any
building work to the dwelling after placement.
(3) Where the policy
of insurance relates to the placement of a transportable dwelling on land for
the first time after its construction, the cost of the residential building
work for the purposes of subsection (1)(e) is the cost of —
(a) the
dwelling;
(b)
placing the dwelling on the land including siting, stumping and any other work
in connection with that placement; and
(c) any
building work to the dwelling after placement.
(4) An insurer is not
entitled to avoid liability under a policy of insurance on the ground that the
policy was obtained by misrepresentation or non-disclosure —
(a) by
the builder; or
(b) in
the case of a claim by a successor in title to the person on whose behalf the
residential building work was performed, by that person.
[Section 25D inserted by No. 72 of 1996
s. 5; amended by No. 37 of 2002 s. 12.]