Support for building rating tool

Last week it was reported that the New South Wales Government is working on a building rating tool to improve insurer confidence in buildings in that state.

This is something that several of us at LMI have been calling for for quite some time. I am sure others within the industry have as well. It certainly has our support subject to one proviso.

The major issue has been that the move to privatisation has not been accompanied by any robust system of classifying buildings with the resultant deterioration in standards and no penalties on the builders. This has been that many individuals and organisations such as financiers and some prudent insurers have expressed concern.

My hope is that governments get this right but one thing is for certain, any new system will require an independent party to rate the property and not those involved in the building process who are all conflicted.