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Demand leads to new renovation cover

New insurance policy means that investors can now get cover for small but value-adding residential building projects.

Wednesday, November 23rd 2016, 12:00AM

by Miriam Bell

BuiltIn Insurance has just launched a Small Project Guarantee which covers any residential building project with a value of up to $30,000.

High demand for renovation work has left the building industry struggling to keep up and reports of shoddy workmanship are increasing.

Buitlin Insurance’s Ben Rickard said this has led to demand from property owners for affordable insurance cover for residential building work below the $30,000 threshold.

This prompted the development of the Small Project Guarantee which will cover work such as renovations, decks, fences and minor alterations, he said.

“We have always done Guarantees on bigger building projects. But there are a lot of smaller projects going on which we thought would benefit from protection.

“This policy gives property owners the same peace of mind for their small projects that those building new homes can get.”

The policy guarantees that the workmanship and materials supplied by the builder will be free of defects for 10 years.

It also covers the property owner’s deposit and guarantees completion of the work if their builder is unable to finish it.

Rickard said tens of thousands of residential renovation projects are undertaken every year and the vast majority of projects are completed without incident.

“But the cost of something going wrong, such as their builder going bust or finding a serious defect, can put severe strain on families, both financially and emotionally.

“An insurance-backed guarantee is now a very affordable way to manage this risk.”

BuiltIn has tried to make the policy as straightforward as possible, he said.

“So as long as the project is residential work under $30,000 and the builder has met Builtin’s assessment criteria and been guaranteed, the policy is available.”

The assessment criteria includes a declaration of the builder’s financial solvency and the builder’s eligibility status must be kept up to date.

Rickard said this gives additional assurance that the builder’s business has been professionally scrutinised, whether or not they are a Licensed Building Practitioner.

 

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Lender Flt 1yr 2yr 3yr
AIA - Back My Build 5.44 - - -
AIA - Go Home Loans 7.99 5.99 5.69 5.69
ANZ 7.89 6.59 6.29 6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.99 5.69 5.69
ASB Bank 7.89 5.99 5.69 5.69
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.40 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.94 - - -
BNZ - Rapid Repay 7.94 - - -
BNZ - Std 7.94 5.99 5.69 5.69
BNZ - TotalMoney 7.94 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.79 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 7.65 5.99 5.75 5.69
Co-operative Bank - Standard 7.65 6.49 6.25 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 6.40 6.10 -
First Credit Union Standard 8.50 7.00 6.70 -
Heartland Bank - Online 7.49 ▼5.65 ▼5.55 ▼5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.00 6.50 -
ICBC 7.49 5.99 5.65 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.75 6.89 6.59 6.49
Kiwibank - Offset 8.25 - - -
Kiwibank Special 7.75 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.44 ▼6.39 ▼6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.99 6.95 6.29 6.29
SBS Bank Special - ▼6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.44 ▼5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.69 6.79 6.49 6.49
TSB Special 7.89 5.99 5.69 5.69
Unity ▼7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 8.50 ▼6.19 ▼5.79 -
Westpac 8.39 6.89 6.39 6.39
Westpac Choices Everyday 8.49 - - -
Westpac Offset 8.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 6.29 5.79 5.79
Median 7.99 6.17 5.79 5.69

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