Cover During Workmanship and Materials Defect Guarantee Period 

We will cover You for a Workmanship and Materials Defect in the Works or the Sub-Works (as applicable), discovered and notified by You to Us during the Workmanship and Materials Defect Guarantee Period, that arises due to the Builder’s unlawful failure.

Special Conditions Applicable to Cover for Workmanship and Materials Defect 

We will not provide cover for a Workmanship and Materials Defect unless:

  • the Works or the Sub-Works (as applicable) have reached Practical Completion; and
  • the Builder has been notified and has failed to rectify the Workmanship and Materials Defect within a reasonable timeframe, and/or
  • the Builder has withheld consent to resolve the dispute by using a disputes resolution service or other legally binding process, or
  • the Builder fails to comply with the decision of the disputes resolution service or other legally binding process

If a claim relates to materials used in the Works or the Sub-Works (as applicable), You must first make a claim under any warranty or guarantee given by the manufacturer or supplier of those materials.

Structural Defects Including Weathertightness 

This Guarantee covers Structural Defects which are defined as any defect with Your dwelling that constitutes a breach of the New Zealand Building Code as it was at the time of Practical Completion. For the avoidance of doubt, to the extent that the defect breaches the New Zealand Building Code this may include without limitation:

  • the foundation systems and footings; and/or
  • beams, girders, lintels, and columns; and/or
  • load bearing walls and partitions; and/or
  • roof framing and floor systems; and/or
  • Decks and decking as defined

For the purposes of this cover a Structural Defect also includes a defect (whether or not of the type defined immediately above) that allows water to penetrate into the Residential Dwelling from the exterior, and results in damage to the Residential Dwelling. However this weathertightness extension does not apply if the Residential Dwelling scores 13 or more on the risk matrix table E2/AS1 Table 2: Building envelope risk scores (which is a measure of weathertightness risk) published by the Ministry of Business, Innovation and Employment (MBIE).

Special Conditions Applicable to Cover for Structural Defect 

We will not provide cover for a Structural Defect unless:

  • a Code Compliance Certificate has been issued for the Works where required by the Building Act 2004, and
  • the Builder has failed to take steps towards and rectify the Structural Defect within a reasonable time of being notified, and/or
  • where the Structural Defect is disputed, the Builder has failed to engage in the dispute resolution mechanisms of the Building Contract or other legally binding process,
  • the Builder fails to comply with the decision of the dispute resolution service or other legally binding process

Halo 10-Year Residential Guarantee -20240301

Additional Costs 

Where You have a valid claim under this Guarantee We will also, as part of that claim, cover You for the following Additional Costs only, which are not directly related to the remediation of the Defect:

  • Reasonably incurred alternative accommodation costs if You are required to vacate Your dwelling as a direct result of the Defects
  • Reasonably incurred costs of protecting, moving and storing of Your furniture and personal effects
  • Reasonably incurred costs for Architects, Surveyors, Consulting Engineers’ and other fees in relation to the complete or partial rebuilding or rectifying the Structural Defects but does not include legal costs or fees incurred by You in preparing a claim.
  • Costs and expenses reasonably incurred by You with Our written consent for:
  • removal of debris
  • dismantling or demolishing
  • shoring up
  • temporary protection of the Residential Dwelling.

Any compensation provided by Us for Additional Costs is capped at a maximum aggregate total of $30,000 for any one claim under the Guarantee.

Spec and Builder-Owned Homes 

We will accept applications for Guarantees covering Residential Dwellings that are owned or part-owned by the Builder or by anyone who effectively controls the Builder (such as a majority shareholder or Director of a building company) – including Residential Dwellings that are intended to serve as their home, Residential Dwellings that are built for the purpose of resale such as “spec homes”, and portable or modular Residential Dwellings constructed off-site – but only on the following conditions:

  • the Builder must have provided to Us the same information (as near as can be achieved) and at the same time, as if the Residential Dwelling was owned by an independent third party and apply for the Guarantee via the established application process.
  • once the Building Site has been sold (whether before, during or after construction) or ownership of the portable or modular building has transferred to the purchaser, a Transfer of Ownership application must be submitted, and this must be accepted by Us in writing for cover to continue
  • assuming the Guarantee is confirmed (which will be at Our sole discretion), it will only be for the benefit of the new owner (and any successors in title until the expiry of the Structural Defect Guarantee Period) and it will only be for the residual time left to run (if any) under the Workmanship and Materials Defect Guarantee Period and the Structural Defect Guarantee Period
  • in the case of a portable or modular building the Practical Completion Date will be determined in accordance with the provisions of this Guarantee but will not be any earlier than the date when it has been installed on its destination site
  • portable or modular Residential Dwellings constructed off-site do not include buildings which have been previously permanently located at another site, and then relocated to a new site.

 

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