March 2013
Home owners Gold: Insurance Case Studies
Property risk insurance (also known as
title insurance) protects you against legal
risks that can threaten the ownership
of your property, or affect your right to
occupy and use your land. The following
case studies show how our clients
benefited from First Title insurance.
Illegal or unapproved building works
More illegal or unapproved building works
Australians love their carports, backyard decks,
verandas and pergolas. Unfortunately, these are
often built without council approval. According to
Archicentre, a subsidiary of the Australian Institute
of Architects, about 29% of Australian residences
have an illegal structure.* The risk will often
remain unknown to you until it’s too late.
The wall that couldn’t retain
The new veranda
After moving into their new home in New South
Wales, our clients were served with a notice
from their local council. The notice stated that
our client’s veranda did not comply with council
regulations as it had not been termite-proofed.
How we helped
First Title immediately arranged a pest treatment
for the veranda to ensure it complied with the
council notice. We then submitted the pest
certificate to the council on behalf of our clients.
The council issued our clients with a compliance
certificate.
In Western Australia, our client’s dividing fence
came down in a storm and debris from the fence
littered the neighbouring property. It was later
revealed that the retaining wall which supported
the fence was not built to regulations. The Council
issued our client with an Order to rectify the
retaining wall on the basis that no building permit
was issued to build the retaining wall in the first
place.
How we helped
First Title retained a building contractor to re-build
the retaining wall and to rectify the dividing fence.
First Title agreed to indemnify the insured for the
building works. The Council later inspected the
works and confirmed they complied with the Order,
which was subsequently removed.
Choose First Title to protect against risks to property ownership.
For more information, please speak to First Title’s customer service team on 1300 362 178.
firsttitle.com.au [email protected]
Home owners Gold: Insurance Case Studies
Miscalculated risks
Title problems
Even the most diligent conveyancing process
cannot ensure the rate calculation is correct. This
may leave the purchaser with an inherited debt
from the previous owners of your property. First
Title Home Owners Gold covers the losses arising
from rate calculation errors.
Even the most thorough conveyancing process
cannot uncover all the potential risks against a
property. That’s where property risk insurance
comes in.
The indebted vendor
Our clients purchased a new home in Victoria. Soon
after, they were served with a notice from their
local council, for unpaid rates of more than $3,000.
Our clients contacted their conveyancer, who
admitted they had made an error and miscalculated
the rate adjustment at settlement. The previous
owner acknowledged the debt, but stated that she
could not afford to pay it.
How we helped
First Title accepted the claim. Our clients paid the
outstanding rates and we reimbursed them for the
full amount.
The inaccurate council
Two months after our clients moved into their new
home in South Australia, their local council served
them with a letter of demand for outstanding
rates. After investigating the demand with their
conveyancer, our clients discovered that the council
had issued them with an inaccurate rates notice
during settlement.
How we helped
First Title accepted the claim and reimbursed our
clients for the outstanding debt, which totalled $1,500.
Where’s the water?
When works were undertaken on our client’s
adjoining property shortly after purchase, they
discovered the water meter and main water
supply were all on the wrong side of the property
boundaries.
How we helped
First Title agreed to indemnify the South Australian
client and arranged for a survey to be undertaken.
With First Title’s support, the client arranged with
the local water authority to relocate the water
meter and First Title also arranged for a plumber
to re-connect the water pipes to the correctly relocated water mains.
Storm-water pipe to nowhere
In Victoria, a plumber informed our client that pipes
in her house were connected to the sewer, which
was illegal as they should be connected to the
storm water. The plumber also located the storm
water legal point of discharge; which was in the
client’s front yard instead of into the street.
How we helped
First Title indemnified the insured for the plumbing
works to rectify the illegally connected storm water
resolving the claim to our client’s satisfaction and
peace of mind.
*Source:Archicentre media release: Why illegal building will catch
up with you, 14 June 2011, www.archicentre.com.au.
This material is intended to provide general information only. For specific coverage, conditions and exclusions, please refer to the policy terms and conditions. Premium is payable in
full on policy issuance. Premium Effective Date 07JUL2011. Some products/services may vary by State. Prices and products offered are subject to change without notice. © 2013 First
American Title Insurance Company of Australia Pty Limited ABN: 64 075 279 908 – all rights reserved. AFSL no: 263876
SAFS20130301
firsttitle.com.au [email protected]