NSW government hopes to increase home insurability with new quality rating tool

The NSW government has partnered with KPMG to develop a tool that will measure the quality and insurability of homes in the state. The so-called Building Assurance Solution (BAS) tool aims to provide both home buyers and insurance companies with a trustworthy rating for residential buildings in NSW. 

Minister for Better Regulation and Innovation, Kevin Anderson said the state government expects this new rating to be genuinely world leading. He says it will help “identify which buildings are trustworthy, from measuring compliance with design and construction standards to traceability of materials all the way back to the manufacturer.”

What does the new rating measure?

Overall, the BAS tool will aim to bring together information on design and compliance to create digital DNAs for individual buildings. 

Anderson said the tool will provide information on:

• what building materials were used
• who made the building materials
• what testing certifications the building holds
• who installed and certified the building work

“Practitioners who build and design in NSW will now have a digital fingerprint that will attach to every project they have worked on,” he said.

How the tool will help homeowners 

There are a number of ways the new BAS tool could benefit homeowners. The first being, as Anderson said, that it will allow aspiring homeowners to make a more informed decision on what could be the biggest purchase of their lives.

The second is that it could help keep home insurance premiums down. This is because insurance companies will be able to more easily compare buildings in the state and, as a result, potentially have the ability to provide more accurate insurance quotes. More accurate premium prices from the get-go could help tackle underinsurance.

Anderson said the new rating will give insurance companies more confidence to return to the market, too. New requirements for designers to lodge designs electronically and for builders to declare their compliance with the building code will provide encouragement for insurance providers, he said. This is good news for homeowners as more insurance offerings on the market equals more competition and potentially lower prices.

Comparing home insurance in NSW

Speaking of competition, the good news is that there are already a number of home insurance providers operating in NSW. 

So, if you’re stuck at home in lockdown or simply think it’s time you reviewed your cover, head to Mozo’s compare home insurance page to see what other policies are out there. Or, if you don’t feel like clicking through just yet, take a look at the options available in Australia below.