The Victorian authorities is investigating whether or not Porter Davis illegally left prospects uninsured after taking their deposits.
Builders in Victoria have to purchase home constructing insurance coverage insurance policies on owners’ behalf earlier than they take deposits or any cash for initiatives of greater than $16,000.
The requirement falls beneath the Domestic Building Insurance Ministerial Order.
“The law requires builders to take out a domestic building insurance policy on behalf of a client before taking a deposit,” a authorities spokesman mentioned.
“Customers rightly expect their construction firms to obey the law – and we’re now looking into concerning allegations relating to Porter Davis’s conduct.”
Grant Thornton on Tuesday held a webinar for Porter Davis prospects following the corporate’s collapse.
Liquidator Said Jahani recommended some have been with out insurance coverage, saying they fell into a niche between paying Porter Davis a deposit and never having an insurance coverage coverage till weeks or months later when a allow was obtained.
“At its extreme, it means you do not have any insurance cover and it means that the deposit you have paid has been lost,” Mr Jahani mentioned.
Porter Davis prospects who’re not sure if they’ve home constructing insurance coverage ought to contact the Victorian Managed Insurance Authority, which is coping with claims within the state.
Other corporations additionally supply home constructing insurance coverage.
The Queensland Building and Construction Commission is coping with claims from the Porter Davis fallout in Queensland, with about 1500 properties in Victoria and 200 in Queensland estimated to be affected by the corporate’s demise.
Those with out a certificates of insurance coverage ought to contact liquidators Grant Thornton.
Source: www.perthnow.com.au
