Tasmania - Illegal Building Works

Claims Chronicles

The Background

In April 2023, Lucy and Greg Weston purchased an investment property in Hobart, Tasmania. In January 2024, Lucy and Greg made a claim for illegal building works after being issued with a Building and Plumbing Notice from the Council. The Building Notice related to an unapproved carport extension and the enclosure of the subfloor of the dwelling where a bedroom and bathroom have been constructed without approval. The Plumbing Notice related to plumbing works undertaken in creating the unapproved bathroom.

Under the Building Notice, Lucy and Greg were required to obtain substantial compliance or permits in relation to the existing building works or demolish all or part of the unapproved structures.

What happened next?

First Title undertook a thorough investigation including appointing a Building Consultant to inspect the property. First Title accepted the claim under the illegal building work coverage in clause 4.6 of the Policy and instructed the Building Consultant to engage a Building Surveyor to determine the requirements to comply with the Building Notice.

Following the Building Surveyor’s assessment, the Building Consultant prepared a scope of works and engaged a builder to provide a quote. The builder quoted the cost of the works to be $180,000 to comply with the Building and Plumbing Notice. The scope included partial demolition and rebuild of the unapproved bedroom and bathroom, along with minor works for the carport enclosure.

What did we do?

First Title offered Lucy and Greg Weston $160,000 which is the policy maximum for illegal building works, and they accepted our offer.

Payment: $160,000 | Claim Type: Illegal building Works

*Names and location have been changed for privacy purposes.