Western Australian Consolidated Acts Western Australian Consolidated Acts (1) A policy of
insurance complies with this Division if —
(a) it
insures the purchaser and the purchaser’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
owner-builder or by reason of the fact that, after due search and enquiry, the
owner-builder cannot be found;
(b) it
provides that claims may be made under it at any time before the expiration of
a period of 7 years from the date of issue to the owner-builder of the
relevant building licence for the building work;
(c) 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;
(d) 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
(e) it
complies with any other prescribed requirements.
(2) 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
building work for the purposes of subsection (1)(c) 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) 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 by the
owner-builder.
[Section 25G inserted by No. 72 of 1996
s. 5.]