Home owners’ scheme popular

Press, 16 July 1980, Page 7

Home owners’ scheme popular

PA i Wellington The : Building Performance Guarantee Corporation believes that there is a growing public awareness of the benefits of its indemnity scheme protecting new home, owners. Tn its annual report to Parliament, it says that, although the number of indemnities issued during the year — 4610 — was only 38 more than last year, the percentage of new dwellings started during theyear and - covered by the indemnity scheme increased from 24 to 30 per cent. The 4610 indemnities issued durig the year by the corporation covered dwellings valued at $121.5 million, the report says. ’ At March 31, 1980, a total of 9182 indemnities

were in . force covering buildings valued at $232 million. The corporation has jdecided not to extend its indemnity scheme, in the meantime,, to alterations and additions work. ' ' It says the decision has' been taken after; extensive inquiries to overseas home warranty organisation and .technical and trade groups in New Zealand. It says that unless a system of prior approval of the builders whose work would be indemnified was instituted, the nature and extent of the liability the corporation could accept on alterations ad additions work wouldhave to be verylimited to keep insurance premiums within reasonable bounds.