How much will a Homefirst Builders Guarantee cost?

When should I apply for a guarantee?

Who completes the guarantee application form?

What extra information is needed with the guarantee application form?

What if I don’t have the Building Consent?

How long will it take to receive confirmation that my guarantee application has been received?

How do I know my guarantee application has been accepted?

When does cover start under the guarantee?

Can I transfer the guarantee when I sell the house?

Who is the insurer that underwrites these policies?

All our insurance and guarantee products are fully underwritten by CBL Insurance Limited, a specialized New Zealand insurance company with nearly 40 year’s experience servicing the building and construction industry. 
Established in 1973, they cover building contractors and home owners against such things as purchase risk, non-completion, defects risk as well as professional liability. They have reinsurance treaties with highly rated reinsurance companies, and currently have a Standard and Poor’s BB+ (stable) financial rating.  They are also rated B+ (good) by A.M. Best.

How do I know my builder can offer a Homefirst Builders Guarantee?

If your builder is a member of the Certified Builders Association then they are automatically entitled to apply for a guarantee, and should offer to do so.  If your builder is not a member of Certified Builders or not already pre-approved by us, then they will need to complete our eligibility application before they can apply for a guarantee.  You can also contact us on 0800 BUILTIN to check whether your builder is eligible.
  

I’ve found a builder that I really like, can I get a Homefirst Builders Guarantee through them?

Yes, if they are a Certified Builder or a Builtin pre-approved builder.  If they are not pre-approved or a member of Certified Builders you can ask them to complete an eligibility application to become a Builtin approved builder.

Can I apply for a Homefirst Builders Guarantee myself?

No, you must complete the form with your builder, who must be approved by Builtin. If your builder is not already Builtin approved click here to download the eligibility application and give it to them.

What is the difference between insurance and a guarantee?

Put simply a guarantee means that in the event of a particular event happening, the guarantor will do something if the guaranteed party can’t or doesn’t. 

Insurance means that in the event of a particular insured event happening, the insurer will pay.
 
A simple comparison may help explain the difference:
 

INSURANCE	GUARANTEE
2 Party Contract (Builder or Owner and Insurer)	3 Party Contract (Builder, Owner & Surety Underwriter)
Duty of Utmost Good Faith	Disclosure: as in ordinary contract law
Cancellable (generally)	Non-cancellable
Calculates Premium Based on Losses	No Loss Anticipated, Fee for Service
Involves Transfer of Risk	No Transfer of Risk
No Reimbursement from Insured	Principal (Builder) Reimburses Surety Underwriter

So the Homefirst Builders Guarantee isn’t insurance – it meets the builder’s obligations if they can’t, and the underwriter will, if possible, seek recovery from the builder of all payments made by them.

Who are Builtin New Zealand?

We provide the support, administrative services and claims management of the Homefirst Builders Guarantee to members of Certified Builders Association of New Zealand, and to many other approved builders.  Our guarantees mean that homeowners can be confident before, during, and after the building of their home that the builder will complete the home in accordance with the Building Contract and that it will be defect free.

We also provide specialist insurance products to the building and construction industry, offering cover that is not available from the big insurance companies.

The people at Builtin New Zealand Ltd are experienced specialists in these products, and have been professional insurance brokers and underwriting agents for over 35 years.

Knowing the building trade is at the heart of our business and our staff have spent many years working in it on behalf of builders, subbies and homeowners.

What is your underwriter's Claims Paying Rating?

CBL Insurance Limited has a rating of BB+ provided by Standard and Poor's (Australia) Pty Limited on 10 May 2011 .

The Insurance Companies (Rating and Inspections) Act 1994 requires Insurers (other than certain exempt Insurers) to obtain a claims paying rating.   The following ratings may be used by Insurance Companies. An insurer rated ‘BBB’ or higher is regarded as having financial security characteristics that outweigh any vulnerabilities, and is highly likely to have the ability to meet financial commitments.

Standard and Poor's (Australia) Pty Limited

Superior	Excellent	Good	Adequate	Maybe Adequate	Vulnerable	Extremely Vulnerable	Regularity Action
AAA	AA	A	BBB	BB	B	CCC	R

Plus (+) or minus (-). The ratings for 'AA' to 'B' may be modified by the addition of a Plus or Minus sign to show relative standing within the major rating categories.