State insurer icare has raised premium rates in three NSW Home Building Compensation Fund categories to reflect underlying risk experience.

The increases, based on an analysis of claims volumes and costs, apply to construction of new homes and apartment buildings, as well as swimming pools. Rates are unchanged for existing homes and apartments. 

“icare regularly reviews pricing in the ... scheme using independent actuarial analysis,” HBCF GM Parthena Elias said.

“Premiums are adjusted when necessary to keep the fund fair, balanced and sustainable.”

icare says the base rate changes, effective November 1, prevent lower-risk single-dwelling buildings from subsidising higher-risk projects.

The scheme provides a safety net for NSW homeowners faced with incomplete or defective building work carried out by licensed builders and contractors.

Different base rates apply across five categories and for metropolitan and rural locations.