When Can a Claim be Made?
Disappearance or death, during the contract period. A claim may also be made for defects that come to light after completion of the project in the Statutory Warranty period if the builder has died, disappeared or suffered an insolvency event.
The legislation provides that a Fidelity Fund certificate or home owners warranty insurance policy provides maximum coverage of $85,000. If no work has been completed, and only a deposit paid, the maximum that you can claim is $10,000. A Fidelity Fund certificate requires a claim to be made within 90 days.
A Fidelity Fund certificate is successive in title and remains valid for a period of five years after completion (or occupation) of the project in the event the residence is sold within this time.