The proposed reforms are intended to strengthen accountability and consumer protection across New Zealand’s building sector.
The Bill proposes mandatory home warranties for new houses, multi-unit residential buildings up to 10 metres, and certain renovations of $100,000 or more involving Restricted Building Work that require a building consent.
The proposed minimum cover includes a one-year defects period and a ten-year structural warranty. Providers would need to register with MBIE.
The final requirements for warranty providers have not yet been confirmed.
Read the MBIE summary →
Read the Government factsheet on consumer protections (PDF) →
The Bill proposes moving from joint and several liability to proportionate liability.
Under the current system, one party can potentially be pursued for the full cost of a defect, even where other parties contributed to the problem.
Under the proposed system, each party would generally be responsible for the share of loss attributable to their contribution.
For homeowners, the change makes the protection available through a building warranty an important consideration.
Read the MBIE explainer →
Read the legal analysis from MinterEllison →
The Bill proposes compulsory professional indemnity insurance for certain design professionals involved in building work, including architects, designers, engineers and surveyors who contribute to building compliance.
The specific roles captured, and the level of cover required, are expected to be confirmed through regulation.
The Bill is broader than the liability and insurance reforms. It also proposes:
Separately, a companion bill proposes doubling the maximum disciplinary penalties for Licensed Building Practitioners. Read the BRANZ analysis →
There is still important detail to come.
This includes:
The Bill still needs to progress through the parliamentary process, and regulations will provide further detail.
We’ll update this page as important milestones are reached.
If the proposed mandatory warranty requirements become law, affected projects will need cover from a registered provider.
That means warranty costs will need to be considered when pricing applicable projects, and builders may want to understand the requirements for obtaining cover well before the new regime begins.
Proportionate liability would also change how responsibility for defects is allocated between parties involved in a project.
Read more about building warranty insurance for builders and developers.
The proposed mandatory warranty regime would apply to new residential developments within its scope, but multi-unit residential buildings over 10 metres are currently outside the proposed mandatory warranty requirements.
Building and Construction Minister Chris Penk has indicated this reflects the limited warranty cover currently available in the market for buildings of four storeys and above, and that officials will monitor how the liability changes affect larger-scale construction.
For larger developments, the availability and quality of warranty protection will therefore remain an important consideration.
Stamford already provides insurance-backed building warranty cover for larger developments, including projects outside the proposed mandatory regime. See our apartment warranties.
The proposed reforms are intended to provide homeowners with greater protection when things go wrong with a building project.
For homeowners buying a new home or apartment, it will be important to understand what warranty protection is provided, who stands behind it and what the policy actually covers.
Read more about building warranties for homeowners.
Stamford has specialised in insurance-backed building warranties in New Zealand since 2014.
We’ve been following the development of these reforms closely, and we’re prepared to operate within the final regulatory framework, whatever shape that ultimately takes.
Stamford’s building warranty policies are insurance-backed and underwritten on behalf of certain underwriters at Lloyd’s of London. Lloyd’s has an A+ (Superior) Financial Strength Rating from AM Best.
We’re also already able to provide cover for projects that sit outside the proposed mandatory regime, including larger apartment and multi-unit developments above 10 metres.
So while the legislation is still evolving, our position is clear: we’re ready.
We’ll continue to monitor the Bill, keep our clients informed and adapt as the final requirements become clear.
The Bill is still progressing through Parliament, so there is no confirmed commencement date.
The proposed legislation includes a one-year implementation period once it receives Royal Assent.
As currently drafted, the proposed mandatory regime would cover new houses, multi-unit residential buildings up to 10 metres, and certain renovations of $100,000 or more involving Restricted Building Work that require a building consent.
The final requirements may change as the Bill progresses.
Pricing is based on construction cost, excluding land.
MBIE estimates warranties under the proposed regime at around 0.3% to 0.6% of total build cost. MBIE’s worked example puts this at approximately $1,200 to $2,750 for a $500,000 build, as a one-off cost covering the full ten-year period.
Actual premiums vary by project. For a specific figure, talk to our team.
The proposed mandatory requirement is not yet in force.
Builders and developers can, however, arrange building warranty cover voluntarily. Many do so as part of the protection they provide to their clients and purchasers.
A guarantee is backed by the financial position of the organisation providing it.
An insurance-backed warranty is an insurance policy underwritten by an insurer. Stamford’s building warranties are insurance-backed and underwritten on behalf of certain underwriters at Lloyd’s of London.
The Bill proposes a regulated framework for mandatory home warranties, with further detail to be confirmed as the legislation progresses.
No. Existing Stamford policies continue according to their existing terms and conditions.
If you have a question about a specific policy or project, talk to our team.
Yes. Submissions are currently open through the New Zealand Parliament website until 11.59pm on 15 November 2026.
Submissions are published publicly, so keep personal contact details in the separate contact field rather than in the body of your submission.
We believe the best way to understand proposed legislation is to read the source material.
The legislation is still evolving, but you don’t need to wait until the final rules are in place to understand what they could mean for your project.
Talk to the Stamford team about your project and the building warranty options available now.
General information about proposed legislation, current as at 17 September 2026. This is not legal advice. The Bill may change during the parliamentary process. Stamford Insurance Ltd is a financial advice provider. See our Disclosure page.
