HomeBond's cover term

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skippy_sham

Guest
Hi, have had a problem with a house I purchased 16 months ago. Water coming in through the roof. Have been attempting to get the builder to resolve it over the last 9 months. finally gave up and contacted homebond since it was a major defect. They wrote back to say that the two year period of cover had expired and that it (the policy) had begun in march 2005. Since I only bought the house in Feb 2006 (16 months ago) this implies that the homebond cover began before I even viewed the house. can this be right? any advice and thoughts appreciated.
 
Re: HomeBond cover's term

Homebond cover normally applies for 10 years. Was the house second hand or something? In my experience you will be very lucky to get Homebond to deal with such issues even if covered and you will probably be left to deal with it yourself and claim on your insurance if applicable.
 
Re: HomeBond cover's term

Hi ClubMan, House was new, claims for "major defects" relating to entry of water or smoke are limited to two years under the HomeBond agreement. Can the term of HomeBond cover commence before the purchase of a new house?
 
Re: HomeBond cover's term

I've never heard of a two year period of cover with Homebond. Maybe check with your solicitor or ask your lender to give you access to the deeds which should include the Homebond agreement terms & conditions.
 
Re: HomeBond cover's term

The OP is right - defects resulting in water or smoke leakage are only covered for two years. Other major structural defects are covered for ten.
 
Re: HomeBond cover's term

Didn't an engineer have to sign off the house as being properly built. They seem to have missed a mega fault. Maybe chase them.
 
Re: HomeBond cover's term

The relevant section from the homebond site states:

HomeBond helps the Home Buyer protect their investment in a number of ways:

1. Warranty - HomeBond provides a warranty (subject to terms and conditions of the HomeBond Agreement) in relation to:

* Major structural defects for ten years.
* Water and smoke penetration for the first five years of the warranty period. (Five years cover only applies to dwellings registered from 01/10/2004)
* Protection against loss of deposit or stage payments before completion.
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The date of registration with Homebond is the key issue whether this complaint (water penetration) is covered for 2 or 5 years.

It is strange that if the policy started in March 2005 that Homebond says it is not covered. Ring them.

Marion
 
Re: HomeBond cover's term

skippy_sham said:
Since I only bought the house in Feb 2006 (16 months ago) this implies that the homebond cover began before I even viewed the house. can this be right? any advice and thoughts appreciated.
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I've had mixed experiences in my dealings with Homebond also, they're "great" if you house is falling down or about to slip out to sea but if it's "just a leaky roof" don't hold out for much. When I brought a (non- major/ non structural) defect to their attention a few years after the initial 2 year part of the warranty was out they declined to look into it for this reason. I persisted and eventually they agreed to examine the problem as a "goodwill gesture". I would say go back to them, explain how you've only occupied the house less than two years ago and dig your heels in. The main man there is Eugene Farrell.
 
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