Notify a Loss or Lodge a Claim? These Are Not the Same Step

What notification does

A notification tells icare HBCF that a problem has arisen: work has not started, work has stopped, the project may not be completed or defective work is suspected. SIRA states that notification should be made promptly and in writing, even if the responsible business is still trading.

The notification need not contain the final scope or cost. At that early stage, the owner may not know the full extent of concealed defects or whether the builder will return. The purpose is to identify the property, certificate, contractor, problem and relevant dates before the warranty period expires.

What a formal claim does

A claim seeks compensation under the policy. It generally requires a recognised trigger and substantially more evidence: the contract, certificate, proof of payments, termination documents where relevant, insolvency evidence, inspection findings, scopes, quotations and related expense records.

The insurer then assesses liability and quantum. It may appoint a building consultant, request information, inspect the property and issue a written decision. Claim acceptance and the amount paid are separate from the act of notifying.

Why owners confuse the two

Homeowners are often told to wait until liquidation before contacting HBCF. That advice risks losing the notification position. The opposite error is assuming that an acknowledgement email means the claim has been accepted or that the insurer has agreed to every later-discovered defect.

Maintain a chronology showing the notification date, reference number, documents sent, later updates and formal claim date. When new defects emerge, notify them clearly rather than assuming the first general email covers every issue.

A practical notification format

State the owner's details, property, certificate number, contractor, contract date, nature of the problem, date work last occurred or defect was identified and immediate steps being taken. Attach key evidence available at that point and ask the insurer to confirm the notification reference and any required next action.

Do not delay merely because the quotation is unfinished. The scope can be developed and updated, but the original written notice should be preserved exactly as sent.

Notify first; complete the evidence afterwards

A homeowner should not wait for liquidation, a detailed liquidator report, formal contract termination, appointment of a replacement builder, a complete scope, identification of every defect, several quotations or a final claim total before sending a written Loss Notification.

The early notice can state what is known, identify the property and certificate, describe the stoppage or suspected defect, give the important dates and explain that investigation continues. The contract reconciliation, testing, marked plans, reports and final cost can then be developed and submitted in controlled updates.

Practical takeaway: Notify early; claim when the trigger and evidence permit. Managing both dates separately prevents a procedural misunderstanding from becoming a coverage problem.

How ARK Houses can help

ARK Houses can begin the site record and preliminary scope after an early Loss Notification, rather than requiring the owner to know the final claim amount first. We then update the evidence as inspection, testing, pricing and construction reveal the true extent of the loss.

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