Failed builder’s $4 million home insurance bill
CUSTOMERS of failed builder Coast to Coast Homes have lodged about $4 million in insurance claims, says state Treasurer Rob Lucas.
He said insurer QBE - which provides home warranty insurance cover underwritten by the State Government's insurance arm - had received 89 building indemnity claims since the Moonta-based builder was placed in liquidation in May.
He said among them were 54 customers who had received payouts totalling $3.4 million.
"The final figure won't be known for some time, but as of last week $4 million is the estimate," he told The Advertiser.
The Advertiser is aware of one property owner who has been quoted up to $200,000 to repair shoddy work done by Coast to Coast Homes.
Builders must take out building indemnity insurance on all projects that require development approval or have a value of $12,000 or more.
The insurance protects homeowners against losses of up to $80,000 for polices issued before June 30, 2017, and $150,000 for policies issued thereafter.
Company liquidators Clifton Hall previously told the paper that 32 customers had likely lost $180,000 in deposits as they were not eligible for insurance protection.
The Moonta-based builder, which had offices in Adelaide and Port Lincoln, was placed into liquidation on May 24, leaving nearly 200 contractors and suppliers out of pocket.
Creditors were told at a meeting in June that debts were expected to exceed $5 million.
Coast to Coast Homes director Sean Craven and his son and general manager Steven Craven have repeatedly declined or ignored requests for an interview.
The pair closed an associated business, Regency Custom Cabinets, on the same day that Coast to Coast Homes was placed into liquidation.
The Advertiser reported that staff of Regency Custom Cabinets were also owed thousands in wages and superannuation.