Purpose of the Guarantee
The Master Build 10-Year Guarantee provides cover if your builder is unable or unwilling to finish a residential project or address defects.
Building guarantees are increasingly requested by homeowners and are required by most mortgage lenders. A builder must offer a guarantee if one is available.
Our Master Build 10-Year Guarantee is one of the most comprehensive products, offering the best peace of mind available on the market. It ensures a level of protection not provided by general insurance or New Zealand legislation.
Coverage of the Guarantee
The total claims under a Master Build 10-Year Guarantee may be up to either $1,000,000 or the value of the building contract, whichever is less.
Full coverage includes:
- loss of deposit
- non-completion
- materials and workmanship
- structural defects
- temporary accommodation.
You can opt for partial cover only, which includes:
- materials and workmanship
- structural defects
- temporary accommodation.
Loss of deposit
A deposit allows your builder to undertake preliminary work, such as planning, consenting, site set up, or purchasing materials.
This cover protects you if you have paid a deposit, but the builder is then unable to start the project (for example, they go into liquidation). The deposit should not be more than 10% of the build cost.
You can claim up to $50,000 or 10% of the value of the building contract, whichever is less.
Cover under New Zealand legislation:
No protection.
Non-completion
Once permanent work begins onsite, cover moves from loss of deposit to non-completion. This cover protects you if the builder is unable to complete the project (for example, they go into liquidation).
You can claim up to $500,000 or 20% of the value of the building contract, whichever is less.
Cover under New Zealand legislation:
No protection.
Materials and workmanship
This cover applies if your builder is unable or unwilling to remedy issues with the build as outlined in your contract.
This may include where the builder has not built something in the way it was specified, or where issues or defects raised during the final review of the home have not been addressed.
Quality of build
Your builder must forward us the notice of practical completion. You have cover for 2 years after the date practical completion was reached.
Cover under New Zealand legislation:
If the building company is still trading:
- Building Act: 1-year implied warranty
- Consumer Guarantees Act: possible limited cover.
Structural defects
This cover protects you if the work carried out by your builder results in structural defects to your home.
This includes failure of load-bearing functions and damage which makes your home unsafe, unsanitary, or uninhabitable.
You have cover for 10 years from the acceptance date of the Guarantee.
Cover under New Zealand legislation:
If the building company is still trading:
- Building Act: 10 years from completion for specific items.
Temporary accommodation
If you need to vacate your home while remediation work is done under a claim, this cover provides temporary accommodation costs.
You can claim up to $10,000.
Cost of the Guarantee
A Master Build 10-Year Guarantee typically costs less than 1% of the build cost for a new home.
Pricing is tiered so you get appropriate coverage for the value of the building project.
Partial cover excludes protection for loss of deposit and non-completion.
| $30,000 - $200k |
$910 |
$730 |
| $200,001 - $400k |
$1,575 |
$1,270 |
| $400,001 - $600k |
$1,875 |
$1,515 |
| $600,001 - $800k |
$2,120 |
$1,700 |
| $800,001 - $1m |
$2,360 |
$1,875 |
| $1,000,001 - $1.5m |
$2,665 |
$2,120 |
| $1,500,001 - $2m |
$3,330 |
$2,665 |
| $2,000,001 - $2.5m |
$3,850 |
$3,300 |
| $2,500,001 - $3m |
$4,675 |
$3,850 |
| $3,000,001 - $3.5m |
$5,500 |
$4,675 |
| $3,500,001 - $4m |
$6,325 |
$5,500 |
Apply for a Guarantee
A Master Build 10-Year Guarantee is not automatically provided by using a Master Builder. The Guarantee is separate from a building contract and must be applied for.
Your Master Builder will complete the Guarantee application form with you, then submit it to us on your behalf.
We will let you and your builder know the outcome of the application. Get in touch if you have not heard from us within 14 days of signing the application.
The application must be approved before building work can start. You will not be covered unless you receive confirmation.
If you do not want a Guarantee, you must sign a waiver to say you have declined the offer. Your builder must lodge the waiver with us.
For more information on the Master Build 10-Year Guarantee, talk with your Master Builder or one of our team.
Contact us