Posted On Feb 13, 2018 in Finance
1. What is the Comprehensive Guarantee Programme?
Signature Homes offers an independently bonded building guarantee for completion of a client’s home as set out in the building agreement. The programme gives our clients more protection than any other in New Zealand and covers not only home completion, but other aspects including weather tightness, structural and non-structural defects. These guarantees are indemnified by RIL (Residential Indemnity Ltd), a company set up solely to underwrite the guarantee. RIL is independent from the Signature Homes Franchise Builder who you contract to build your home.
2. What are the differences between RIL’s Home Completion Guarantee and other ‘completion’ guarantees?
Other building guarantees have set limits in relation to the total amount that can be paid out for loss of deposit and/or non-completion, and some have excesses to pay on any claim. This means that the difference in the claim limit set by the guarantee company and the actual costs to complete the home then need to be paid by the client. RIL’s Home Completion Guarantee has no set limits around how much any client can claim. Should there be a problem, RIL simply guarantees to finish the home as per the building agreement – at no extra cost to the client. There are not any excesses to pay on any claim made against RIL’s Guarantees.
3. When do the guarantees start and finish?
The loss of deposit and completion aspects of the Comprehensive Guarantee Programme come into effect from the date your application is accepted by RIL (usually within two weeks of your building agreement becoming unconditional) and the cover remains in place until the Practical Completion of your home. The structural, weather tightness and non-structural defect guarantees apply from the practical completion of the home. Non-structural defects are covered for two years and structural and weathertightness defects are both covered for a period of 10 years from Practical Completion.
4. Should a claim need to be made on the Completion Guarantee what is the maximum cover?
The maximum cover available is the cost to complete the home (if any) over and above the remaining progress payments that are to be made under the building agreement. The provided cover is based on the home being finished as per the plans and specifications in the original building agreement, and any subsequent variations.
5. What is the financial strength backing the Home Completion Guarantee?
The Home Completion Guarantee is backed by a performance bond of $1 million issued by ANZ Bank New Zealand, plus significant cash reserves. The performance bond and cash reserves are independently audited by Deloittes on an annual basis to ensure the bond and cash reserves are adequate to cover any potential claims.
6. Are the guarantees transferable to the next owner of the home?
Yes they can be repeatedly transferred at no cost, unlike many other building guarantees.
7. If our Signature Homes Franchise Builder did fail, who would finish our home?
In the unlikely event this did occur, another Signature Homes Franchise Builder would complete the work (in the first instance). If this was not possible, then a reputable substitute would be used. The structural, weather tightness and defect aspects of the Comprehensive Guarantee Programme would still be applicable to the home once completed. The Home Completion Guarantee ensures your home is completed as per your building agreement, with no additional cost.
8. Is the work on my home insured if I need to make a completion claim?
Yes, RIL makes sure that insurance is in place from the time the builder ceases work through to the appointment of a substitute builder and the Practical Completion of the home. This differs from a number of other build guarantees, where the guarantee company is not responsible for keeping the works insured.
9. Can my solicitor take a closer look at RIL’s Guarantee Programme?
Absolutely, we encourage this. Your solicitor will be able to confirm that RIL’s Guarantee Programme stands up very favourably when compared with others on the market.
10. Are there any conditions or general exclusions I need to be aware of?
Yes – such matters as landscaping, materials supplied or work performed by others etc. These are similar to other insurance policies and guarantees and are covered in the terms and conditions of the guarantee document.
Our Market Leading Building Guarantees
Our aim is to delight our clients with every aspect of our service and every detail of their new home. That's not just a promise, we back it up with our exclusive, independently bonded guarantees. These include:
TOTAL PRICE GUARANTEE: We guarantee that the price we give you when you sign the Building Contract is the same price you will pay for us to build your new home – with the exception of any agreed variations.
NO HIDDEN EXTRAS GUARANTEE: We guarantee that we won’t sneak anything else into your price meaning there are no nasty surprises.
GUARANTEED COMPLETION DATE: When we tell you which day you can move into your new home, we mean it – otherwise we pay!
10-YEAR STRUCTURAL GUARANTEE: Your new home will stand the test of time.
10-YEAR WEATHER TIGHTNESS GUARANTEE: We guarantee all our homes will be warm, dry and healthy to live in for years to come.
2-YEAR MAINTENANCE GUARANTEE: (which covers any non-structural defects) We guarantee that our homes will remain maintenance free for two years, giving you more time to enjoy living in them.
Our unique Home Completion Guarantee provides 100 percent protection on any payments made by our clients during the construction of their home.
Read more about our Guarantees here.