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Calls are being made for the government to insist on homeowners taking out building warranty insurance when they’re going through a renovation or a rebuild.
In an article with Newshub, HOBANZ, an organisation that represents homeowners caught in messy renovation and rebuild situations, said too many households are being caught with budget blow outs and unsatisfactory work.
HOBANZ chief executive Roger Levie told the publication the government should step in and make insurance against defects mandatory. He also suggested involving a third party in the build.
Newshub outlined the case of the Lee family, who bought the “ugliest house” on Torbay Street on the North Shore. They had it renovated but, four years on, the house is still reportedly the ugliest on the street and a safe hazard. They contracted Dion South – a builder better known as a renovator on Kiwi Living and Homemade – to do the work. The family claimed they paid South an initial $331k and an additional $115k. South allegedly asked for a further $55k, which they refused to pay, and then he walked off the job.
It was suggested that both the builder and the family agreed to a fixed contract over 16 weeks, and there is a line in the contract that says, “if the project takes longer there will be extra charges.”
Levie said he’d seen in excess of 100 similar situations. South, meanwhile, did want to comment as the matter is going to the High Court, Newshub added.
