What is not covered?

The following items are excluded from the Guarantee and We will not provide any cover for any claim arising from or in connection with these items:

Associated Works

Any Structural Defect or Workmanship and Materials Defect (whichever is applicable) to landscaping, fencing, driveways or paths, patios or similar land improvements, swimming pools, spa pools or sauna, main supply services or drains supplied by a public utility, septic tank systems or farms or solar or wind electrical generating systems.

Owner Delay

Any additional damage caused by a delay on Your part in notifying both Us and the Builder of a fact or circumstance giving rise to a possible claim under this Guarantee.

Damage Outside of The Works

Damage due to, or arising out of, any defect in the design, workmanship, materials or components of the Residential Dwelling which do not form part of the Works or the Sub-Works (as applicable).

Defects discoverable at Practical Completion

Any defect that was or should reasonably have been identified at Practical Completion of the Works.

Errors or Omissions in Design or Engineering Work

Any defect due to errors or omissions in the design or engineering work where such work was carried out by a third party, whether or not such work was part of the Works.

Fines and Penalties

Fines, penalties, or liquidated damages.

Force Majeure Events

Any Structural Defect or Workmanship and Materials Defect (whichever is applicable) that results froms some cause beyond the Builder’s reasonable control, such as subsidence, settlement, heave or landslip (unless such loss or damage is as a result of a defect in the workmanship, materials or components of the Works).

Severe Weathertightness Risk

Where the risk matrix scores 13 or more, the weathertightness extension does not apply. See section 3 for further details.


Any loss which results from any fraudulent act(s) of the Builder.

Guide to Acceptable Tolerances

Any defect that falls within the Guide to Acceptable Tolerances.

Indirect or Consequential Losses

Losses which do not result directly from a defect unless expressly stated in this Guarantee. For example, We will not be liable for costs arising from inconvenience or distress; loss of enjoyment; consequential losses of any kind; loss of use; loss of income or business opportunity; legal costs or expenses arising either directly or indirectly as a result of the events or circumstances that led to the defect.

Neglect, Deterioration or Wear and Tear

Loss, damage, or deterioration due to:

  • your neglect or failure to carry out normal or specific maintenance
  • wear and tear, normal deterioration caused by aging process or otherwise, normal dampness, condensation or shrinking, change in colour, texture, opacity, staining or cosmetic blemishes to any element of the Residential Dwelling
  • the inability to match materials, colours or finishes in remedial works or between remedial works and existing works when remediation is being, or has been undertaken, including remediation undertaken as a result of a claim under this Guarantee

Non-Agreed Remedial Work

Any work to correct a defect which is undertaken without Our consent, other than such work as is necessary to prevent further damage as set out in Section 5 – Claims Conditions of this Guarantee.

Non-Approved Builders

Any Structural Defect or Workmanship and Materials Defect due to, or arising out of Works that are undertaken or completed by a Builder who is not an Approved Builder, unless agreed to in writing by Us.

Non-Defect Disputes

Any dispute between the Builder and the Owner that does not directly relate to either a Workmanship or Materials Defect or a Structural Defect, such as disputes concerning delays or alleged overcharging.

Not the Builder’s Responsibility

Anything that is not the Builder’s responsibility under the Building Contract OR has been arranged or paid for directly by You, including any work, services, materials or chattels.

Personal Injury

Any costs, losses, expenses or damages for death, bodily injury, disease, illness or injury to mental health.

Relocated Buildings

Buildings which have been previously permanently located at another site, and then relocated to a new site.

Significant Variations

Variations to the Building Contract totalling more than 10% (ten per cent) of the Contract Price, unless expressly agreed to by Us in writing.

Toxic Mould

The removal or rectification of any Pathogenic Organisms including bacteria, yeasts, mildew, viruses, fungi, mould or their spores, and any damage resulting from them, unless it is covered by the weathertightness extension of the Structural Defect cover.

Use of Non-Compliant Materials

Where You agreed or directed the Builder to use materials that are or should reasonably have been suspected of being:

  • non-compliant with the appropriate New Zealand standards including secondhand or recycled materials and/or other non-approved materials
  • unsuitable for the particular function for which they have been applied, or contrary to the manufacturer’s or supplier’s recommendations

Wilful Acts

Any defect or damage whatsoever caused by any act of either Yourself or any other party acting on Your behalf. Where the Structural Defect is caused by Defective Workmanship We will provide cover for a period of up to ten years from Practical Completion.