Understanding the Master Builders 10-Year Guarantee

Similar to insurance coverage, builder guarantees are set in place to ensure your project is covered even if there’s an issue with your building team. This guarantee offers both peace of mind and benefits that extend beyond standard legal protections.

It Covers More Than Standard NZ Law Or Insurance. This exclusive guarantee offers a level of protection that surpasses general NZ insurance, especially in cases where builders cannot or will not complete the project.

Protection If Your Builders Cannot Complete The Job. The main purpose of this guarantee is to allow you to claim some of your financial investment back in case your building team cannot finish the job. A few reasons why a builder may not be able to finish a project are:

• Liquidation, Bankruptcy Or Other Financial Issues. The building company could run into financial trouble, and they may be legally unable to continue. Discuss finances before you settle on your builders, and ensure they can handle the work.
• Lack Of Licensing Or Building Consent. If your builder is found to be working without proper certification or does not meet building consent requirements, they may be forced to stop. Be sure you choose a building team that’s properly licensed and that prioritises compliance. 
• Overcommitment. If your builder overcommits to too many jobs at once, they may fall behind and fail to complete your project as intended. Choose builders who will be appropriately dedicated to your project.

If your project cannot be completed, you may claim up to either $500,000 or 20% of the contract value, depending on which number is lower.

Materials And Work Quality Coverage. This protects you if your builder doesn’t fix issues with your build, as outlined in your building contract. Your building contract should highlight everything your builder is responsible for, and if they deviate from this agreement, you might have an issue with your results.

The Master Builders 10-year guarantee protects you in this situation for 2 years from practical completion.

Long-Term Structural Defects Protection. The guarantee protects you if your builder’s work results in structural defects in your home. Structural defects compromise the long-term safety and stability of your home and should be addressed promptly. This coverage includes failure of load-bearing functions and damage that hinders the safety of your house.

The Master Builders 10-year guarantee lasts for the entire 10-year period, so any structural defects that arise during the decade following your acceptance of the guarantee will be covered.

Coverage For Temporary Accommodation. You may have to temporarily relocate your family if your home needs to be worked on due to a claim, such as if you need to remodel your home due to structural problems. You can claim up to $10,000 for temporary accommodation costs.

The Guarantee Cost Is Based On Build Value. The cost of your guarantee will be based on the total budget of your building project, and generally costs less than 1% of the entire project. Pricing is tiered, reaching up to projects that cost 4 million NZD, and there are also partial coverage options for lower prices.  

Overall, it’s always better to have protection and not need it than to need protection and not have it. The relatively low price of the guarantee makes it a good investment, not only in your home but also for your peace of mind. 

Guarantees Are Transferable. The 10-year guarantee lasts for a decade, but what if you don’t keep your new home for a decade? If you sell your home, you can transfer the guarantee to the new owner so they can enjoy the benefits. The guarantee can be transferred as many times as needed during its decade-long lifespan.

The presence of a guarantee can add appeal and value to your house, making your property more attractive to buyers. 

Loss Of Deposit. An initial deposit lets your builder conduct preliminary work, including planning and site preparation. Standard New Zealand legislation offers you no protection in case the builder can’t do this work. However, the guarantee protects you if you’ve paid a deposit, allowing you to claim up to $50,000 or 10% of the building contract. The deposit can be up to 10% of the total build cost.