Owner builder fined due to insurance oversight

An owner builder has been fined after selling his Yanchep home without home indemnity insurance. File picture

OWNER builders are being urged to ensure they fully understand their obligations after a man was fined $2400 for selling a Yanchep home without the necessary home indemnity insurance.

At the Joondalup Magistrates Court on November 1, Jonathon Robert Reardon pleaded guilty to an offence under WA’s home building contract laws following a prosecution by Building and Energy.

The court was told that in 2013, Mr Reardon received owner-builder approval and a building permit for the construction of a two-storey home in Yanchep, which was completed the following year.

The building regulator said in 2016 Mr Reardon entered into a contract to sell the property but did not have a home indemnity insurance policy, which was required if an owner-builder sold the house within seven years of the building permit issue date.

Building and Energy acting executive director Saj Abdoolakhan said the laws were designed to protect new owners from building defects.

“Owner-builders are responsible for their building work for seven years from when the building permit is granted,” he explained.

“Home indemnity insurance covers subsequent owners if the owner-builder fails to rectify faulty or unsatisfactory workmanship for reasons such as insolvency, death or disappearance.”

Visit www.commerce.wa.gov.au/building-and-energy/owner-builders