Residential Building Warranty for Individual Homes
Buying a new home is one of the biggest investments you will make so it’s important to have a building warranty which protects you both during construction and for 10 years after completion. Our Residential Building Warranty has been designed to cover any type of new development, from individual homes to larger sub-divisions and multiple housing units.
Cover is available where the developer / builder has registered with us. The registration process is simple and straightforward, requiring a short application form and a quality assurance assessment by one of our team of qualified surveyors.
Once registered, any of their projects can be considered for insurance. Either the developer / builder or the buyer can complete a project notification form and submit it with plans of the home(s). We’ll confirm the quotation within 24 hours and if accepted, we’ll issue a building warranty policy to both the developer / builder and the owner.
What we cover under our standard 10 year warranty
- Loss of Deposit due to Developer or Builder Insolvency
If you lose your deposit before work commences we will pay up to 10% of the Contract Price or $100,000 (whichever is lower)
- Increased Costs if Developer or Builder fails to complete
If the Developer fails to complete your project due to Insolvency after work has started we will contribute to any increased costs to complete your home up to 10% of the Contract Price or $100,000 (whichever is lower)
- Defects Insurance Period – 2 years
For the 2 years following completion your developer or builder is responsible for rectifying defects in the property. If he fails to remedy defects in your home for which he is responsible during the 2 year maintenance period we will pay for another builder to carry out the works.
- Structural Latent Defects – 8 years
For a further 8 years from the end of the defects period we will pay to rectify major structural defects in your property, including weather-tightness issues
Total Indemnity Period from date of Completion is 10 years and your policy is index-linked
The Limit of Indemnity under sections 3 and 4 of the policy is the Declared Project Value as stated in the policy, adjusted for inflation in accordance with the Statistics New Zealand Residential Building Price Index.
• Costs incurred due to contaminated land
• Costs incurred due to a defect which affects the health & safety of occupants
• 26 weeks’ alternative accommodation if you have to move out for repairs
• Professional fees 5%
• Removal of debris 5%
This is a summary of the cover available and does not form part of any contract.
For full details of the cover applicable to any specific property, it will be necessary to refer to the Policy Document or contact us for advice.