A Sydney-based real estate franchise network said it would offer vendors an insurance policy that covers the eventual home buyer for major system and appliance repairs that occur in the first year after sale.
“Today, just about everything comes with a warranty, including newly built homes,” said Douglas Driscoll, Starr Partners CEO. “Until now, however, Australian home buyers have never had an option for a second-hand home purchase.”
The insurance coverage, entitled Starr Safeguard, will allow buyers to be protected from many property and appliance repairs in the first 12 months after their purchase. This will include insurance for systems such as electricals, plumbing, lock systems, and minor roof damage as well as the major appliances (hot water system, stove, cook-top and dishwasher).
The policy, which was created under an agreement with PropertyCover and underwritten by Lloyds of London, costs less than $500. Vendors opt in before settlement, and transfer the coverage to the buyer’s name during settlement.
Mr Douglas said vendors would benefit from home buyer cover.
“A vendor’s property stands out from the crowd as it gives buyers confidence and peace of mind that potential problems may be covered.
“It also covers the seller throughout the selling process. For instance, if a covered hot water system blows just before the sale, Starr Safeguard will contribute to its repair or replacement.
“This type of cover is hugely popular in the US, with 90 per cent of homes in California sold with it.”