- On 14 December 2022, icare HBCF issued a Statement on Elderton Homes to policy holders impacted by the voluntary administration of Elderton Homes Pty Ltd, ACN 138 413 902 (Elderton).
- On 24 February 2023, icare HBCF issued a Further Statement on Elderton Homes, clarifying its role following the first and second meeting of creditors of Elderton and sharing questions raised by Elderton’s Administrators and icare HBCF’s answers.
- On 28 February 2023, at the previously adjourned second meeting, the creditors voted in favour of a Deed of Company Arrangement (DOCA).
Termination of contracts
The Administrators stated at the meeting on 28 February 2023 that, should the DOCA be approved, the Administrators’ intention was to terminate contracts with affected owners, to allow them to then contract with replacement builders for the completion of their projects.
icare HBCF understands that notices have been issued by the Administrators such that these contracts will be terminated with effect from 21 March 2023. Owners should consider obtaining their own legal advice in relation to these notices and what impact it has on them.
Choice of builder and upfront costs
Following the termination of these contracts, it is a matter for each owner to make enquiries with and engage an appropriate alternative builder to complete their works. icare HBCF is aware that some builders may ask for an upfront fee to review each project. Some builders may absorb and incorporate this cost as part of completing the works.
In either case, icare HBCF will assess all claims based on their individual circumstances and in accordance with the relevant Policy wording. Owners do not have to choose a particular builder in order to lodge a claim on the fund.
Other ongoing costs
As reported by the Administrators on 28 February 2023, after termination of contracts, owners are responsible for securing and fencing their site until an alternative builder is engaged. For Policy holders, the costs of securing and fencing may be claimable (subject to the Policy wording) and, again, all claims will be assessed based on their individual circumstances.
Owners may also be required to obtain their own insurance in relation to their site, and owners should consider obtaining their own advice in that regard.
Valid policies only
The HBCF only covers Policy holders with valid Policies in place at the time Elderton was placed into voluntary administration, and where the premiums have been paid, as addressed in the previous statement, and always subject to the relevant Policy wording.
For Policy holders who lodge HBCF claims, Gallagher Bassett Services Pty Ltd will commence assessment of those claims and appoint a building consultant to inspect the relevant properties and prepare a scope of works. Please note that this step will occur regardless of the alternative builder engaged to complete the works.
Those Policy holders should be expect to be contacted by Gallagher Bassett or the building consultant to make a time for inspection of their properties.
To lodge a claim, you should complete the Claim Form for Homeowners (PDF, 0.3MB) to allow us to provide further assistance.
You can also find helpful general claim information on our website, including the following:
Claim form submission
For any additional enquiries, please contact icare HBCF at email@example.com.
If you have concerns outside the scope of Home Building Compensation insurance, you may contact Fair Trading on 13 32 20.