Starr Partners first real estate group to launch home buyer cover

MEDIA RELEASE

August 2011

Starr Partners first real estate group to launch

home buyer cover

For the first time in Australia, home buyers can be protected from the headache of unexpected repair costs when they buy their home, thanks to a new insurance concept that can be likened to a home warranty. The cover will allow buyers to be protected from many property and appliance repairs in the first 12 months of their purchase.

Starr Partners is the first real estate group to launch the cover, under an agreement with PropertyCover which developed the concept and underwritten by Lloyds of London. Called Starr Safeguard, the cover will be included exclusively in Starr Partners Sydney property sales at the vendor’s request.

Designed with both home seller and buyer in mind, Starr Safeguard covers a property’s major systems including electricals, plumbing, lock systems, and minor roof damage as well as the major appliances (hot water system, stove, cook-top and dishwasher). The policy is affordable at less than $500, with vendors opting in before settlement and transferring to the buyer’s name during settlement.

Douglas Driscoll, Starr Partners CEO, says, “Today, just about everything comes with a warranty – including newly built homes. Until now, however, Australian home buyers have never had an option for a second-hand home purchase.”

Douglas says Starr Safeguard fills the gap in the market. “Home and contents insurance can cover property damaged due to flood or fire. Building inspections usually focus on the structure and building work. Starr Safeguard, on the other hand, covers single items that fail – for example, plumbing failures due to blockages by tree roots.

A recent Starr Partners survey of 200 home buyers recognised a need for home buyer cover, with:

• 86 per cent saying they are concerned about their ability to cover additional potential costs in the first year of their property ownership;
• 87 per cent saying it was important residential properties for sale come with a 12-month warranty to cover any faults; and
• 62% saying they were required to fix faulty items in their last property purchase.

Douglas says vendors also benefit from home buyer cover: “A vendor’s property stands out from the crowd as it gives buyers confidence and peace of mind that potential problems may be covered. In our survey, 97% of property buyers said they would perceive a cover like this as a property benefit. It also covers the seller throughout the selling process. For instance, if a covered hot water system blows just before the sale, Starr Safeguard will contribute to its repair or replacement.

“This type of cover is hugely popular in the US, with 90 per cent of homes in California sold with it. Starr Partners is excited to be the first ones to offer this in Australia.”

For interviews, full survey results, images and more information contact:

Elizabeth Jackson | The Ideas Suite | (02) 9279 3330 | 0431 848 101 | ejackson@theideassuite.com.au

About Starr Partners: Starr Partners is the largest and longest-running Sydney-based real estate franchise group. Spanning Greater Western Sydney, the Starr Partners network comprises 24 offices across the Hills District, Hawkesbury, Nepean, Inner West, South West, Outer West and Central Coast. Headed by CEO Douglas Driscoll, the group remains focused on steady expansion in greater metropolitan Sydney, with an emphasis on growth regions.

About PropertyCover: The insurance arm of HomeSource Ltd, PropertyCover is a developer and marketer of unique insurance products aimed at the owner-occupied and investment property market across Australia. PropertyCover is a distributor of National Underwriting Agencies with all products underwritten by syndicates of Lloyds of London.