15Financial loss not required to be covered by policy

15 Financial loss not required to be covered by policy (1) The policy need not cover financial loss incurred in relation to any of the following: (a) the payment of a deposit or progress payment above the amount specified in the contract relating to the guaranteed work;

Chapter 2 Authorised RBI policies Part 2.1 Matters to be included in policy Building (RBI and Fidelity Fund Schemes) Regulations 2012 10 (b) if the beneficiary is a subsequent purchaser of the residential building – defects that are readily apparent at the time of purchase; (c) damage that could reasonably be expected to result from fair wear and tear or from the current owner of the building failing to maintain the work; (d) damage caused by a person or made worse by the failure of the current owner to take reasonable and timely action to minimise the damage; (e) legal liability resulting from any event that is not expressly insured under the policy; (f) a defect that is due to residential building work (including design work) or materials not specified in the contract relating to the guaranteed work (for example, materials supplied by the contracting owner); (g) a person's injury or impairment (including injury or impairment of the person's mental condition), death, disease or illness; (h) loss of rent, income, value or opportunity; (i) inconvenience or distress; (j) the unreasonable refusal of the beneficiary to allow access to the insurer, or the insurer's agent, for the purpose of assessing the beneficiary's claim; (k) the failure of the beneficiary to maintain adequate protection against pests; (l) the malfunction of any mechanical or electrical equipment if the insurer can prove the malfunction was not attributable to the workmanship of, or installation by, the builder; (m) fraud or dishonest conduct of any kind by the builder; (n) an appliance; (o) asbestos contamination or removal; (p) war, civil unrest, a nuclear event or an act of nature. Notes for subregulation (1)(m) 1 Section 54CH of the Act creates offences relating to a builder giving the authorised insurer misleading information.

Chapter 2 Authorised RBI policies Part 2.1 Matters to be included in policy Building (RBI and Fidelity Fund Schemes) Regulations 2012 11 2 Section 54CI of the Act prevents an insurer from avoiding liability under a policy if the builder has given the insurer misleading information. (2) In addition, the policy need not provide for the payment of an amount in damages or liquidated damages for delay in completing the guaranteed work. (3) Despite this regulation, a provision of the policy does not contravene, and is not inconsistent with, the Act or these Regulations if the provision provides greater cover than is required by regulation 14.