Leaky Home Insurance Scare

The Building Industry Association has begun a review headed by leaky building expert Don Hunn. He led the government's 2002 leaky building investigation which reshaped New Zealand's building requirements.

Under the Building Act, private and city council inspectors approve buildings by signing off compliance certificates. But if an inspector approves a faulty building, he/she will no longer be insured against negligence claims.

This means if the inspector is proved liable for approving a leaky home, the home-owner has little chance of compensation. Since the leaky building debacle most insurance companies have cancelled "weathertightness" - ie, "leaky homes" - cover or written a raft of exclusions into their contracts

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