The New Zealand Certified Builders’ mandatory residential guarantee insurance scheme has reached nearly $2 billion worth of cover.
While building guarantees are not mandatory under the regulatory framework, NZCB launched “Halo” – its own mandatory building guarantee – last year.
“Anyone who chooses to use a builder that is a member of NZCB for a new home build or major renovation over $30,000 will be covered by NZCB’s mandatory building guarantee, and the guarantee is also available on an opt-in basis for work valued at under $30,000,” NZCB Chief Executive Grant Florence said.
Halo is the widest home guarantee insurance in New Zealand, and covers all building defects for 10 years, including damages caused by defects and faulty materials, NZCB said. Its scheme carries an “a+” rating from Standard and Poor’s and is managed independently by Lloyd’s of London to “ensure there is no conflict of interest as is the case with in-house guarantee schemes.”
According to NZCB, 23% of the total Halo cover was for residential housing projects in Auckland, with an average contract value of $410,000 (excluding land and reflecting a high level of alteration/renovation work in the Auckland area).
Nationally, approximately 4,900 projects were covered with values ranging from a $10,000 project to the single largest cover for a $5 million project. The average contract value nationally was at $380,000 (excluding land).
“Given New Zealanders’ homes are often our single biggest investment, it is important that homeowners have confidence that if work is not completed to the highest standard it will be remedied,” Florence said.
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