'Joke' insurance no comfort for claimants - The Age- About: Home Owner Warranty

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. But when the De Nolas tried to claim on their legitimate insurance policy, they were told they were on their own. Choice magazine has described the insurance as “junk” and the Consumer Action Law Centre says it offers “little or no protection for consumers, yet comes at significant cost”. A federal Senate inquiry is under way and the system was removed in April in Tasmania after no payouts were made in four years. read more

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