Beware of Dodgy Insulation Installers

With $2.8billion on offer from the Government’s Home Insulation Program it is not surprising that a huge number of rogue operators flooded into the market, just out to make a quick buck!

Prior to the rebate the number of insulation Australian companies that specialised in insulation was in the 100's but at the height of the rebate the number of companies was as high as 10,000 companies.
Whilst some of these new installers had a background in the building trade, unfortunately many - maybe even most had no idea what they were doing except for taking the opportunity to make easy money from Government.

The biggest issue with the rebate - and reason why so many dodgy operators were able to exist was the ease in which the government allowed new operators to enter the market. Unlike say builders who go through years of apprenticeship, training and licensing requirements - historically there was no licensing requirements to become an Insulation Installer in Australia.

To make matters worse the requirements for listing on the “governments approved installers register” offered little security that the installer was in fact experienced at installing insulation.

To be listed on the Government’s Insulation Register you simply need have an ABN (which anyone can get easily) and either;

1)      Prove you have at least 2 years experience at installing insulation (Great)
2)      Be a licensed trade professional – eg. a builder, electrician or plumber (Ok to Good)
3)      Complete a 2 day Insulation Installation Course (Potential Disaster)

So a huge number of installers out there had NO experience in actually installing insulation or even running a business let alone an insulation business.

What a lot of people probably don't realise is - that it was not until 1 Nov 09 (4 months into the rebate) that only one person in the company needed to have completed the 2 day course to obtain the rebate. As along as the person who did the 2day course signed off on paper work the company would get paid by the Government. So for many householders the actual insulation work was carried out by people with absolutely;

• NO Experience,
• NO Government Approved Course &
• NO Idea about Australian Standards, best practices or even the potential risks to themselves or homes they were insulating.

Additionally as many of these companies were just out to make a quick buck there must have been a lot pressure on the workers to just get the work done as quickly as possible so they could move onto the next job!

Result - Many Homeowners Are Left With Potentially:

• Fire Hazards - Over 100 house fires to date and more likely as poorly installed insulation moves and decays overtime increasing the risk of fire.
  
• Health Risk - Insulation sourced overseas has been reported to have dangerous levels of Formaldehyde which is a known to cause cancer & allergies
• No Insulation Benefit - Poorly installed insulation has no benefit - For every 1% not covered equals at least a 5% reduction in insulation benefits once you get to

Whilst a lot has been made about the dodgy practices of insulation installers the fact is if you make it so easy for anyone to get access $2.4billion dollars with the of any absence of checks - almost anyone will take advantage of the opportunity to rip the government off (or at least to varying degrees). As has also been seen in the Education Building Revolution and even the Electrical Contractors commissioned to fix the foil insulation problems.

I honestly feel feel sorry for the many insulation companies that were in business prior to the rebate. To the most part they tried to do the right thing only to be under cut by dodgy installers who cared little about training, safety, Australian Standards or even about the future of their business.

It seems crazy to think that many of these companies benefited least from the insulation rebate (because they did not rip off the government or clients) are the same companies that will suffer the most from the demise of the rebate and the bad reputation of the industry.  Many of these businesses built up their reputation and business over decades to now face closing their doors because who would want insulation now or at least until the Government works out the problems before starting the new program in 3 months time.

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