New details have emerged on mandatory home warranties for new builds and major renovations, as well as professional indemnity insurance requirements for designers. They build on the Government’s announcement back in August this year, to move from joint-and-several liability to a proportionate liability system.
Some of the proposals include:
- Requiring professionals contributing to building design, such as architects and engineers, to hold professional indemnity insurance.
- Mandatory home warranties for all new residential buildings three storeys and under and for renovations $100,000 and above, covering a one-year defect period and a 10-year structural warranty.
These proposals aim to strengthen homeowner protection and help clarify how responsibility for defects will be more evenly shared under proportionate liability. Home warranty and professional indemnity insurance changes will be progressed alongside other reforms through the Building Amendment Bill, expected to be introduced in early 2026. Once legislation is passed, there will be a one-year implementation period before proportionate liability and the new requirements take effect.
To read the Government’s announcement and factsheet, please click here.
Author | Sandamali Ambepitiya
Sandamali arrived at Property Council with a Bachelor of Arts and Law, and experience as an advisor with the Employers & Manufacturers Association.
Conscientious and detailed, Sandamali leads our advocacy in the South Island and Wellington regions. She is also leading our work on the reform of the resource management and building systems and sustainability / seismic strengthening.
An excellent listener, Sandamali is in her element when facilitating stakeholders and members to develop our advocacy positions.
