Master Builders welcomes mandatory home warranties to protect consumers 

9 December 2025

Master Builders welcomes the Government’s plan to mandate home warranties for new residential buildings of three storeys and under and for renovations of $100,000 and above.

We are proud to already offer our market-leading Master Build Guarantee for new builds and renovations. Its cover goes above and beyond the minimum requirements currently signaled by the Government.

Our guarantee provides 2-year defects cover and a 10-year structural warranty, with optional loss of deposit and non-completion cover for standalone builds. The minimum requirements announced by the Government are to provide 1-year defects cover and a 10-year structural warranty.

Strong consumer protections, such as mandatory home warranties, are a crucial part of the Government’s move to a proportionate liability system, so homeowners aren’t left to foot the bill if something goes wrong with a project.

Proportionate liability is where the parties involved in a project cover only their share of the risk. Whilst this is fairer than the current joint-and-several system where the “last person standing” (more often the council) is liable for everyone else’s risk, we do not want to move to a system where homeowners are tied up in years of blame shifting or legal costs. The system must work for homeowners first.

The Master Build Guarantee has always been an important part of our offer to homeowners. Going forward it will be critical. Not all warranties or insurance products in the market provide the same level of protection, and homeowners need to understand exactly what they’re covered for, and what happens if things go wrong.

Insolvency cover, in particular, is key. The Master Build Guarantee is one of the only products to offer this level of cover. As the wider system evolves, products with that level of robustness will only become more important.

Master Builders looks forward to working with officials and our members to make sure the new requirements are implemented effectively – delivering better outcomes for the sector and, most importantly, for Kiwi homeowners.

For more information, see Master Build Guarantees.