'Joke' insurance no comfort for claimants: THE AGE: 02/08/08

Home warranty policies seldom protect consumers, writes Natalie Craig.
"WHEN Giorgio De Nola's parents died within months of each other, he used his inheritance to build a house for his wife, Marina, and their young children. He signed a contract with a licensed builder in 2004, which included a home warranty insurance policy. Four years later, the house is so poorly built that the De Nolas do not have a certificate of occupancy. Building inspectors have told them the balcony is not safe. The shower leaks into the kitchen, the garage roof has had to be replaced and their repair quote is more than $50,000. But when the De Nolas tried to claim on their legitimate insurance policy, they were told they were on their own." Click here to go to the full story

COMMENT: The Senate Committee (Information Link) looking into all this, chaired by Senator Hurley (email: senator.hurley@aph.gov.au) seems predisposed to maintaining the status quo despite the evidence that consumers are being hurt and poorly served. We have a right to expect more!

If any of this concerns or worries you you may want to email Senator Hurley to tell her of your concerns, your experiences and your expectations of government. You may also want to place a comment on this site!

Senate Inquiry Looks Like A Whitewash

The hyenas are probably laughing! Click Here

EXCLUSIVE: SOURCES close to the Senate Economics Committee Inquiry into the rort of Builders Warranty Insurance is nothing more than a whitewash.

PropertyReview.com.au confirmed last night that the Labor Party dominated inquiry into the Housing Industry and Vero Insurance controlled Builders Warranty Insurance is likely to find that the ‘Last Resort Insurance’ schemes should survive scrutiny despite being abandoned in Tasmania .

It still reigns supreme in the Labor Party states of New South Wales and Victoria .

“State Labor governments, the Rudd government are leaning heavily on the Senate Inquiry to support the farce of Builders Warranty Insurance,” one disgruntled Victorian Labor Party figure told PropertyReview.com.au late yesterday.

“The Senate Inquiry seems to be a farce,” he added.

The source revealed to PropertyReview.com.au that the Senate Inquiry and the Rudd government may have been influenced by self interest lobby groups.

In fact, on the Senate Inquiry website the Housing Industry Association have been allowed to write a privileged - totally scurrilous and defamatory response - to the Builders Collective submission to the Inquiry without fear of court action.

Consumer advocacy Choice in its recommendation to the Inquiry stated:
“Australian Governments should take early action to provide better and uniform protection for those who have a home built or renovated. Specifically, this should entail: • Guaranteed access for consumers to alternative dispute resolution mechanisms • Provision of greater scope to de-register builders who do not meet appropriate performance standards; and • A revamping of compulsory builders’ warranty insurance to ensure that it is of genuine value to consumers and that consumers understand the product.”

In August 2004, Choice found warranty insurance basically junk insurance.

In fact, Choice stated:
“In August 2004 CHOICE Magazine investigated home warranty insurance. That investigation found that in most states mandatory insurance was unreasonably limited to circumstances where a builder dies, disappears or becomes insolvent. CHOICE also found that the privatisation of home warranty insurance coupled with changes to the insurance market had whittled away many consumer protection measures.”

The HIA in their submission even bagged Choice as being: “It appears that Choice Magazine is not interested in providing a fully informed (let alone a balanced) view on this issue”.

It’s little wonder the cynics are already stating the Inquiry could prove a whitewash manipulated by self interest groups.

SOURCE: PropertyReview.com.au
ZEBRAaustralia wonders just who it is that should be protecting consumers. The buildg industry? The insurance industry? Government? Themselves? Ideally it must be all players! However, they must be equipped do it!

THE ZEBRA HERD GROWS

There is always safety in numbers and as more Zebras team up the more dangers they can see and oh what are they seeing? There are not a lot of predators out there but there are more than enough to be worried about.

So as the herd grows it is a little disturbing to discover that there are far far too many predators about. If you feel at risk, or have been bitten, or you have a danger to report please use the comment section below to alert others of what you see or have seen.

The more eyes that are watching the more that’s seen and the safer each individual will ultimately be!

AND remember that there is another Zebra Australia Website. Take a look and you'll find more contact information there!

COMING SOON - A NEW ERA IN CONSUMER PROTECTION

Australian consumers are about to have a new consumer service available to them. fair-trading.com.au will be offering a conflict resolution service . The network’s motto is "turning victims into victors & predators into prey".

A FASCINATING TALE

A Zebra owner builder (lets call him ZOB_1) goes to HARDWARE X (HX) to check out an item of equipment. He finds that there is a choice of one and it seems a bit too expensive for what it has to offer.

ZOB_1 then goes to Bunnings to check what they have to offer. The situation is not a lot different except there is a choice of two. The HX item is one but it is 20% cheaper and the other is about 50% more expensive.

ZOB_1 Decides to get the HX option (but from Bunnings) at 20% less. He takes it to the site assembles it and finds that it is not up to the task – not safe enough most importantly. So ZOB_1 rings Bunnings and they say “bring it back, do not bother to dismantle it again and we’ll do a refund or a replacement upgrade – your choice, but please bring your receipt.”

ZOB_1 goes to Bunnings again, decides their option 2 was probably what he should have purchased in the first place, swaps option 1 for 2, does the reconciliation transaction – there are smiles all round – loads the replacement in the utility and is back home within the hour. The whole process was simple, stressless and satisfying despite everything!

Driving home, satisfied with the experience, even despite his mistakes, ZOB_1 begins to wonder why it is that some of his ZEBRA Network friends have not had similar experiences with their builders.

ZOB_1 can only conclude that Bunnings is in their business to satisfy their customers and by doing so, perhaps increase their market share – and they did so here! So it seems that there are quite a few builders – too many at least – for whom this is an alien concept. ZOB_1 is still trying to fathom that idea one out – as is the whole network – but there you go but big tick for Bunnings . It's all black and white really!

A CHANCE TO GET POLITICAL ONLINE PERHAPS ?

If you want to get POLITICALLY active, and online, well possibly there will be an opportunity to submit petitions to the Senated online. The Senate is now asking for submissions on being able to submit on-line petitions! (due 08/08/08)

HERE IS THE LINK
http://www.aph.gov.au/house/committee/petitions/epetitioning/index.htm

BAD NEWS STORIES, GOOD NEWS STORIES

First the bad news, since the ZEBRA AUSTRALIA BLOGspot has been online there have been so many sad tales that have been brought to the growing network’s attention – but hey Dodgy Bros Pty Ltd have been in business since Adam was a boy.

Now for some good news, there have been a significant number of good stories coming ZEBRA AUSTRALIA's way. The good news stories seem to have particular sets of similarities that also seem throw light on the bad ones – well to some extent. Because, ZA has had a focus on Dodgy Bros Pty Ltd it is ever likely to be the case that we’ll hear proportionally more about the disasters (major & relatively minor) that these 'operators' leave in their wake.

For instance, it is patently clear that the dysfunctionality of the current last resort insurance scheme operating throughout Australia – the mechanism that comes into play when things do go wrong – is a part of the problem. What is less clear is what it is that actually triggers the chain of events that lead to the point when it does.

On the one hand, there seems to be some consistencies in the good and bad stories. On the other, there also seems to be unique circumstances that apply in each case – case by case. The good news stories (and there are many) are starting to throw some light on some of this – that is once the passion and distress is peeled back. People in Australia have traditionally made their home their single largest investment (and they have been encouraged to) so it is no wonder that there is some passion there.

If all building stories coming to ZA were bad ones it would be obvious to all and sundry as we simply move around in Australia’s ‘built estate’. By-and-large the vast majority of Australian buildings (homes in particular) are sound, durable and safe – albeit that much of it is poorly designed, environmentally inappropriate, etc. It is no wonder that Dodgy Bros Pty Ltd victims ask, why me?

It is just the case that SOME projects fall through the cracks of the regulatory system. Why? How? When? Therefore, early on in PROJECT ZEBRA it is clear that there is a need for some INDEPENDENT research. Who can do, or will commission, this work?

• Government (Local, State or Federal)? ZA thinks that is unlikely!
  
• The Building Industry via its associations? ZA doesn’t believe that they would believe that they see it as their job – its simply not their reason for being!
• A University? Possibly, but who, or what, would trigger such a project?
  
• The community? Possibly, but who within ‘the community’ is going to initiate it or fund it – and how?

Where to from here? ZA is now looking at this set of questions and attempting to find a way forward.

ZEBRA AUSTRALIA’S OTHER WEBSITE

The ZEBRA AUSTRALIA NETWORK has set up another 'Web Presence' to assist ZEBRA networkers. This site will be able to provide access to some valuable tool kits etc. as they are developed.

The site is now up and running albeit early days. There is already information there that will be of some help to intending homebuilders and renovators.

NOTE: Tasmanian networkers will also find links to the local network on this site.

The Web Address is : www.ZEBRAaustralia.net

A WEBSITE THAT'S WORTH A LOOK

The Builders Collective has drawn ZEBRA’s attention to Catherine Cusack MLC ‘s WEBsite www.catherinecusack.com.au

Catherine Cusack is NSW’s Shadow Minister for Fair Trading
 & Volunteering. It makes for rather interesting reading for anyone interested knowing more about the dysfunctional homebuilder's warranty insurance situation.

Also, the Sydney Morning Herald are also running a story soon on all this – so watch out for that.

THE BUILDERS COLLECTIVE OF AUSTRALIA Inc

ZEBRA AUSTRALIA supports the Builders Collective of Australia Inc – an initiative of industry members disillusioned with the mandatory 'Last Resort Home Warranty Insurance Scheme'. This organisation is actually working towards building a better building industry – there are indeed some good builders with their clients interests at heart.

If you are contemplating building a home or renovating please go the BCA Website and watch the videos – it is an imperative!!

WEB Address: www.builderscollective.org.au
Email the Collective

Leaks threaten homes at Twin Waters (Q'ld)

12:00a.m. 14th July 2008 ... By Bill Hoffman

Angry property owners who paid more than a million dollars each for a stake in Lend Lease’s signature Water Gallery development at Twin Waters want to know why their home units leak every time it rains.

They have recorded at least 80 instances of water incursion and at least one owner still has tarpaulins covering the roof of his $1 million- plus over-the-water unit.

Peter Sanday, who moved into No.22 at Water Gallery after purchasing off the plan in 2004, is so upset he has set up a website – www.lendleasedefects.com – to record a litany of problems with the Water Gallery complex and the View Point, Visage and Novotel Twin Waters developments.

READ THE FULL STORY