Countering Misinformation: What Homeowners Need to Know About Nicheliving, Insurance Coverage, and Contract Termination

Since the Building Services Board refused to renew Nicheliving Construction's building contractor registration on 31 July 2024, a wave of misinformation has left many homeowners confused and uncertain about what to do next.

Misinformation
False rumours are circulating that terminating a contract with Nicheliving could void home indemnity insurance coverage. Worse still, some homeowners have received incorrect legal advice to the effect that terminating their contracts will void their home indemnity insurance policies.  We are also aware of misguided claims that contracts are automatically terminated due to the triggering of the QBE Insurance policy.

This misinformation is causing unnecessary hesitation, anxiety and confusion among homeowners.

QBE Insurance Are Requesting Evidence of Termination

Let us be clear: If you terminate your building contract correctly, it will not void your home indemnity insurance policy.

QBE Insurance themselves have confirmed this by circulating an email among some of their insured homeowners saying that they will not finalise any insurance claims until the contract with Nicheliving has been terminated. In their email, QBE have reiterated the importance of taking legal advice before proceeding with termination.

Stay Close to Legal Advice

It is crucial to only rely on legal advice from competent, qualified Australian lawyers. Builders, QBE representatives, and social media contributors lack the expertise to provide accurate legal advice. Relying on their advice could mislead you and jeopardise your rights.

Vogt Legal is fully aware of the complexities involved in terminating contracts with Nicheliving. We have always advised our clients to tread carefully in this process to avoid the risks of unlawful termination. Incorrectly terminating your contract could result in liability for damages and jeopardise your ability to claim under the QBE policy.

The Current Situation Remains Fluid

As of 21 August 2024, the State Administrative Tribunal is considering Nicheliving’s application to stay the Building Services Board’s decision. If the stay is granted, it may operate retroactively, effectively restoring Nicheliving's building contractor registration as if it had never expired.

Therefore, although it is presently safe to begin the termination process, such as by serving a Notice of Default, complete termination of contracts with Nicheliving is not advisable at this stage (even though QBE has invited some home owners to terminate their contracts).

However, with the prevailing winds changing daily, it may be safe to proceed with termination by the time you read this.

For now, homeowners are strongly advised to remain informed and stay close to competent legal advice. Vogt Legal is closely monitoring the developments and can provide accurate guidance on when it is safe to terminate contracts without risking insurance coverage or facing potential damages claims against you by Nicheliving.

QBE has already emphasised the importance of getting legal advice before terminating your building contract.

If you are building with Nicheliving, we strongly encourage you to reach out to our experienced legal team who specialise in the many issues and complexities which arise from building contracts. Get in touch today for a free initial telephone conversation.