Updates on the Interim Liquidation of CBL Insurance Limited

For homeowners – CBL Homefirst and other guarantee policies

Posted 27/04/18 at 10pm

Dear Guarantee Policyholder,

An application to place CBL Insurance Limited into liquidation today was successfully opposed.

One of the reasons for opposing the liquidation was that the company is solvent.

A full defended hearing was agreed to instead by the Court. That defended hearing is set to be heard on the 5th and 6th of June.

In the meantime, the company remains in interim liquidation and under the control of interim liquidators.

We will continue to keep you informed, however no new information is likely to be forthcoming until after the June hearing.

Yours sincerely,

Jim & Keryl Rickard

 

 

 

 Posted 23/03/18 at 8pm

Dear Guarantee Policyholder,

A liquidation hearing in respect of CBL Insurance Limited is scheduled to be heard at Court on 27 April 2018. The outcome of the hearing may not be known for a week or so following the hearing itself, and unless any new information is forthcoming in the interim we will provide our next update at that time.

If you have any questions please let us know.

Yours sincerely,

Jim & Keryl Rickard

 

 

 

 

 

 

Posted 14/03/18 at 10pm

A progress update for policyholders of builders guarantees underwritten by CBL Insurance Limited.
Dear Homefirst Guarantee Policyholder,

We are making progress towards a streamlined application process for homeowners who wish to purchase a replacement 10 year home warranty.

We’re really pleased that we were able to arrange this alternative cover so quickly and, under the circumstances, believe we have negotiated the best deal possible.

Replacement 10 Year Home Warranty Premiums for Affected Homefirst Guarantee Policyholders

These premiums apply to all policyholders with homes still under construction, as well as those with homes completed in the last 12 months.

Stamford Warranty Benefits

Before & During Construction

  • Loss of deposit cover, up to 10% of the contract price (maximum of $100,000)
  • Extra costs to complete, up to 10% of the contract price

After Completion (Defects Period)

  • Covers all defects for the first 2 years and major structural defects for a further 8 years, including weathertightness claims
  • Defects include: defective design or specification, failure of products and materials, defective workmanship

Additional Benefits

  • Provides a first response policy directly to the owner
  • Transferrable to a new owner on sale at any time within 10 years – added value when seeking a buyer
  • Underwritten by Certain Underwriters at Lloyds of London – Standard & Poor’s rating A+
  • Claims professionally managed by independent loss adjusters
  • Inflation protected – cover is linked to the Building Cost Index

What To Do

If you are interested in applying for a replacement warranty please complete the Registration of Interest form. We will be in contact with you once the application process has been finalised (we’re working on making this as straightforward as possible).
Click Here to Register Your Interest in Applying for a Replacement Home Warranty
Please let us know if you have further questions.
Yours sincerely,

Jim & Keryl Rickard
BUILTIN NEW ZEALAND LIMITED
0800 284 584
04 Spring Street, Tauranga 3140

 

Posted 05/03/18 at 8pm

A progress update for policyholders of builders guarantees underwritten by CBL Insurance Limited.

Response from the interim liquidator

Here’s a reminder of what they said last week:
All policies currently in force will remain in place and should policyholders have a claim under their policies, it will be processed by CBLI in the ordinary course of business.  However, it should be noted that the timing and quantum of payment under any policy a claim may be made under is uncertain at this time and as stated above, no claims can be paid while the company remains in interim liquidation.

You can read the full circular from the interim liquidator here: Circular to Builders’ Warranty insurance policyholders and claimants

————————————

Overnight, we received the following additional responses:

1. Can you please advise what the interim liquidation process involves?
The ultimate purpose of the interim liquidation is to provide the company with a moratorium in order for the interim liquidators to assess the financial position of the company.

2. Within what timeframe do you expect this to be concluded?
At this early stage of the interim liquidation, it is difficult to estimate when the interim liquidation will come to an end.

3. How do those clients who do cancel their policy register for a refund?
Unfortunately, while the company is in interim liquidation, and a moratorium is placed over the company, refunds cannot be returned to policyholders that have cancelled their contract, in the event pro rata refunds are available under the terms of the policy.The interim liquidators will endeavour to provide policyholders with an update as soon as they are able.

Last week we approached Stamford Insurance and they have now agreed to offer an alternative warranty for some affected policyholders

The scheme, which is underwritten by Lloyd’s of London, will enable homeowners to purchase a replacement warranty in the following situations:

1. For people who have signed a contract and paid a deposit, but where work has yet to start:
The new warranty will cover the risk that they may lose their deposit if their builder becomes insolvent.

2. If construction has already started:
The new warranty will guard against builder insolvency and provide 10 years’ defects cover on completion.

3. For homeowners who have taken possession of their homes within the past 12 months:
Stamford will offer them a new 10 year policy.

Read Stamford’s full statement here:
http://www.scoop.co.nz/stories/BU1803/S00173/stamford-insurance-steps-in-to-cbl-issue.htm.

We will update you again as soon as we have finalised the details and a process to register/apply for the new warranty has been established.

We are continuing to seek a solution for policyholders who fall outside these criteria and will update you as soon as more information becomes available.

Please let us know if you have further questions.
Yours sincerely,

Jim & Keryl Rickard
BUILTIN NEW ZEALAND LIMITED
0800 284 584

Home


104 Spring Street, Tauranga 3140

 

Posted 05/03/18 at 8pm

A preview of what we released to the media on Tuesday.

Family business affected by CBL fallout

Clients of a Tauranga-based insurance services firm are bearing the brunt of the interim liquidation of troubled NZX-listed insurer CBL Insurance Limited.

CBL Insurance Limited was placed into interim liquidation on Friday the 23rd of February at the behest of the Reserve Bank, over concerns about their solvency ratio and a lack of compliance with directives from the regulator.

Jim & Keryl Rickard have owned and operated Builtin New Zealand and CBA Insurances, both of which have substantial numbers of customers with policies placed with CBL, for more than 15 years. Says Mr Rickard, “It was a huge shock to us when the news broke on that Friday evening. We’ve been working since then to find alternative cover for our clients, which we’ve been able to do for the most part, but it has taken a toll on us and the staff”.

To add a further complication, some clients have confused CBL Insurance Limited with CBA Insurances, the insurance brokerage run by the Rickards. “We’ve had to reassure clients that our business is not affected, that CBL is just one of the insurers that we used for some policies”, said Mr Rickard.

According to Mrs Rickard, staff at both companies have been working flat out and over the weekend dealing with customers worried about the effect this may have on them. “The way our staff have stepped up has been incredible, we’re very thankful to have such a great team”.

The businesses operate in two distinct markets, providing general insurance services to SME builders & trade professionals and providing 10 year builders guarantees through their network of accredited builders. According to Mr Rickard all insurance clients are now covered elsewhere, but with some having to pay an additional premium to the new insurer. Whether they are able to claim a credit from their cancelled policy will depend on the outcome of the interim liquidation of CBL.

They have also found an alternative insurer for some builders guarantee customers, again for an additional cost. Mrs Rickard, who runs the guarantee side of the business said: “we felt that the most important thing was to ensure our clients had an alternative provider available as soon as possible. We’ve been able to do this for all policyholders with guarantees less than 12 months old, and are just working through the details now. We’re also in talks with insurers to try and find a solution for homeowners with older guarantees.”

Both companies began life after Jim, an insurance industry stalwart for more than 40 years, was approached by the Certified Builders Association to provide insurance and guarantees to their members. CBL were chosen at that time as a NZ-based insurer that did builders guarantees. “We’ve worked with them for all that time and never had any concerns about their financial stability. They were an A-rated insurer, so we were as confident as we could be that our clients’ policies were in good hands”.

The Rickards say they have lost business as jittery clients move their policies to other brokers, but they claim that most customers are understanding and even sympathetic given the circumstances. “They’re grateful that we’ve been keeping them up to date and have arranged new cover for them so quickly. Many of our clients have become friends over the years and their messages of support have truly been wonderful”.

Please let us know if you have further questions. We will continue to update you as we receive new information.
Yours sincerely,

Jim & Keryl Rickard
BUILTIN NEW ZEALAND LIMITED
0800 284 584

 

 Posted 27/02/18 at 4.45pm

You may be aware that CBL Insurance Limited (CBLI) was placed into interim liquidation on Friday evening. CBLI are the underwriters of the Homefirst Builders Guarantee. “Interim liquidators” are appointed to preserve the company’s assets pending the Court’s determination of whether or not to place the company into final liquidation.

As a result of the announcement CBL Insurance Limited’s financial strength rating has been downgraded to E (under regulatory supervision) by their ratings agency A.M. Best.

We have this afternoon received the following response from the interim liquidator:

“All policies currently in force will remain in place and should policyholders have a claim under their policies, it will be processed by CBLI in the ordinary course of business.  However, it should be noted that the timing and quantum of payment under any policy a claim may be made under is uncertain at this time and as stated above, no claims can be paid while the company remains in interim liquidation.”

They have also advised us that CBLI are not currently accepting new guarantee applications.

You can read the full circular from the interim liquidator here: Circular to Builders’ Warranty insurance policyholders and claimants

We will provide further updates as more information comes to hand.

Yours sincerely,

Jim and Keryl Rickard

 

Posted 26/02/18 – 2pm

We are providing this update to advise you that CBL Insurance Limited have been placed into interim liquidation.

Once we became aware of this announcement we emailed the liquidators with the following questions:

a) what is the status of current policies
b) whether new business is still being accepted
c) the current status of claims that have been submitted
d) whether new claims will be considered/accepted.

We are currently awaiting their reply and will advise you immediately we hear from them.

This will be one of a regular series of updates we will send you as this situation unfolds. We will make sure you know what is happening, when it happens, and eventually what our overall response on your behalf will be.

In the meantime, we want to reassure you that Builtin will be conducting business as usual. Please do not hesitate to call if you have any queries.

Yours sincerely,

Jim and Keryl Rickard

 

For trade policyholders – CBL liability & indemnity insurance policies

Posted 27/04/18 at 10pm

Dear Policyholder,

An application to place CBL Insurance Limited into liquidation today was successfully opposed.

One of the reasons for opposing the liquidation was that the company is solvent.

A full defended hearing was agreed to instead by the Court. That defended hearing is set to be heard on the 5th and 6th of June.

In the meantime, the company remains in interim liquidation and under the control of interim liquidators.

We will continue to keep you informed, however no new information is likely to be forthcoming until after the June hearing.

Yours sincerely,

Jim & Keryl Rickard

 

 

 

 

Posted 05/03/18 at 8pm

A progress update following the interim liquidation of CBL Insurance Limited.

We have secured replacement liability & indemnity insurance and you’re covered but need to confirm it

This temporary cover was put in place last week. To confirm it please click here and answer the additional questions required by our new insurer.

We will send new policy documentation and an invoice for the balance of your policy period in due course. A matching credit will be requested from CBLI, the amount of which will depend on the outcome of the interim liquidation.

Click Here to Confirm Your New Insurance Cover

Who is the new insurer?

Our liability & indemnity policies are now underwritten by The Hollard Insurance Company Pty Limited. Hollard are licensed by the Reserve Bank and have a financial strength rating of A- (Excellent) from A.M. Best. In New Zealand Hollard are represented by Ando.

Responses from the interim liquidator

Overnight, we received the following additional responses:

1. Can you please advise what the interim liquidation process involves?
The ultimate purpose of the interim liquidation is to provide the company with a moratorium in order for the interim liquidators to assess the financial position of the company.

2. Within what timeframe do you expect this to be concluded?
At this early stage of the interim liquidation, it is difficult to estimate when the interim liquidation will come to an end.

3. How do those clients who do cancel their policy register for a refund?
Unfortunately, while the company is in interim liquidation, and a moratorium is placed over the company, refunds cannot be returned to policyholders that have cancelled their contract, in the event pro rata refunds are available under the terms of the policy.The interim liquidators will endeavour to provide policyholders with an update as soon as they are able.

We have secured alternative cover for some 10 year guarantee policyholders

The new scheme has been arranged through Stamford Insurance and is underwritten by Lloyd’s of London. It will enable homeowners to purchase a replacement warranty under certain circumstances.

Read Stamford’s full statement here:
http://www.scoop.co.nz/stories/BU1803/S00173/stamford-insurance-steps-in-to-cbl-issue.htm.

We are currently finalising the details and developing a process for policyholders to register/apply for the new warranty.

We are also continuing to seek a solution for policyholders who fall outside Stamford’s criteria.

Please let us know if you have further questions. We will continue to update you as more information becomes available.
Yours sincerely,

Jim & Keryl Rickard
BUILTIN NEW ZEALAND LIMITED
0800 284 584
104 Spring Street, Tauranga 3140

 

Posted 05/03/18 at 8pm

A preview of what we released to the media on Tuesday.

Family business affected by CBL fallout

Clients of a Tauranga-based insurance services firm are bearing the brunt of the interim liquidation of troubled NZX-listed insurer CBL Insurance Limited.

CBL Insurance Limited was placed into interim liquidation on Friday the 23rd of February at the behest of the Reserve Bank, over concerns about their solvency ratio and a lack of compliance with directives from the regulator.

Jim & Keryl Rickard have owned and operated Builtin New Zealand and CBA Insurances, both of which have substantial numbers of customers with policies placed with CBL, for more than 15 years. Says Mr Rickard, “It was a huge shock to us when the news broke on that Friday evening. We’ve been working since then to find alternative cover for our clients, which we’ve been able to do for the most part, but it has taken a toll on us and the staff”.

To add a further complication, some clients have confused CBL Insurance Limited with CBA Insurances, the insurance brokerage run by the Rickards. “We’ve had to reassure clients that our business is not affected, that CBL is just one of the insurers that we used for some policies”, said Mr Rickard.

According to Mrs Rickard, staff at both companies have been working flat out and over the weekend dealing with customers worried about the effect this may have on them. “The way our staff have stepped up has been incredible, we’re very thankful to have such a great team”.

The businesses operate in two distinct markets, providing general insurance services to SME builders & trade professionals and providing 10 year builders guarantees through their network of accredited builders. According to Mr Rickard all insurance clients are now covered elsewhere, but with some having to pay an additional premium to the new insurer. Whether they are able to claim a credit from their cancelled policy will depend on the outcome of the interim liquidation of CBL.

They have also found an alternative insurer for some builders guarantee customers, again for an additional cost. Mrs Rickard, who runs the guarantee side of the business said: “we felt that the most important thing was to ensure our clients had an alternative provider available as soon as possible. We’ve been able to do this for all policyholders with guarantees less than 12 months old, and are just working through the details now. We’re also in talks with insurers to try and find a solution for homeowners with older guarantees.”

Both companies began life after Jim, an insurance industry stalwart for more than 40 years, was approached by the Certified Builders Association to provide insurance and guarantees to their members. CBL were chosen at that time as a NZ-based insurer that did builders guarantees. “We’ve worked with them for all that time and never had any concerns about their financial stability. They were an A-rated insurer, so we were as confident as we could be that our clients’ policies were in good hands”.

The Rickards say they have lost business as jittery clients move their policies to other brokers, but they claim that most customers are understanding and even sympathetic given the circumstances. “They’re grateful that we’ve been keeping them up to date and have arranged new cover for them so quickly. Many of our clients have become friends over the years and their messages of support have truly been wonderful”.

Please let us know if you have further questions. We will continue to update you as we receive new information.
Yours sincerely,

Jim & Keryl Rickard
BUILTIN NEW ZEALAND LIMITED
0800 284 584

 

 

 

 

Posted 02/03/18 at 9pm

An update on the interim liquidation of CBL Insurance Limited and what it means for policyholders.

CBL Insurance Limited (CBLI) Interim Liquidation – Update 8

Wow, what a week. It was just last Friday evening that we found out CBLI (one of the insurers we use) had been placed into interim liquidation. Having worked with them for more than 15 years and given their A-rating, licensed insurer status and 40 year history, this came as quite a shock.

This has affected liability, indemnity & 10 year guarantee policies only. Tools, vehicle and contract works policies are placed with different insurers and are not affected.

We’ve spent the last 7 days finding alternative cover for our clients, asking questions of the liquidators and keeping policyholders informed as new information comes to hand.

Here’s where things stand at present:

ADVICE FROM THE LIQUIDATOR

“In the event the policyholders cancel their insurance contracts, the Interim Liquidators are not in a position to refund any premium on a pro rata basis and any refunds potentially payable will rank as an unsecured creditor of the company in the event it is placed in liquidation.

All policies currently in force will remain in place and should policyholders have a claim under their policies, it will be processed by CBLI in the ordinary course of business.  However, it should be noted that the timing and quantum of payment under any policy a claim may be made under is uncertain at this time and as stated above, no claims can be paid while the company remains in interim liquidation.

Policyholders are urged to obtain advice from their insurance brokers or other professional advisors to determine whether they need to purchase new insurance cover.”

LIABILITY & INDEMNITY INSURANCE POLICYHOLDERS

In light of the above we took the decision to arrange temporary cover to safeguard the interests of our clients. Depending on when their policies renew clients may have an additional premium to pay, with a matching credit from CBLI subject to the outcome of the interim liquidation.
All affected policyholders are now covered by our alternative insurer. Click here to confirm, if you have not already done so.

Our new insurer is The Hollard Insurance Company Pty Limited. Hollard is rated A- (Excellent) by A.M. Best and is licensed and regulated by the Reserve Bank. In New Zealand Hollard is represented by Ando.

HOMEFIRST GUARANTEE POLICYHOLDERS & ELIGIBLE BUILDERS

We have arranged an alternative insurer for 10 year builders guarantee cover and are accepting new guarantee applications. Clients with houses that are either under construction or have been completed within the last 12 months can also purchase a new guarantee. However, the possibility of a credit from CBLI is dependent upon the outcome of the interim liquidation.

We are working to find a solution for people with homes more than 12 months since completion.

The new guarantee is backed by Lloyds of London, rated A+ by Standard and Poor’s.

QUESTIONS WE HAVE ASKED THE LIQUIDATOR

  1. What is the interim liquidation process?
  2. When do you expect it to be concluded?
  3. How do clients register for a refund if they have cancelled their policy?
Please let us know if you have further questions. We will not provide updates over the weekend unless the liquidator gives us new information.
Yours sincerely,

Jim & Keryl Rickard
BUILTIN NEW ZEALAND LIMITED
0800 284 584

Posted 01/03/18 at 7pm

An update on the interim liquidation of CBL Insurance Limited and what it means for policyholders.

CBL Insurance Limited (CBLI) Interim Liquidation – Update 7

CBLI (one of the insurers we use) was placed into interim liquidation on Friday evening. Since then we have found alternative cover for our clients and will continue to keep you informed as more information comes to hand.

LIABILITY & INDEMNITY POLICYHOLDERS

1. Cover for clients who have renewed or taken out new policies in the last few weeks has already been placed with an alternative insurer with no additional premium to pay.
2. For all other policyholders we can arrange immediate cover for the remaining policy period with our alternative insurer. There is an additional premium to pay, with a matching credit from CBLI dependent on the outcome of the interim liquidation.

If you have not already done so, please click here to answer the 2 extra questions required by the new insurer.

3. We are providing quotes and accepting new business as normal via our online platform.
4. Our new insurer is The Hollard Insurance Company Pty Limited. Hollard is rated A- (Excellent) by A.M. Best and is licensed and regulated by the Reserve Bank of New Zealand.

HOMEFIRST GUARANTEE POLICYHOLDERS & ELIGIBLE BUILDERS

1. We are now accepting new applications for 10-year builders guarantee policies with an alternative insurer.
2. People with houses still under construction or within 12 months of completion can also apply for the new 10 year guarantee. The possibility of a credit from CBLI will depend on the outcome of the interim liquidation.
3. We are working to find a solution for people with policies more than 12 months since completion.
4. The new guarantee is backed by Lloyds of London, rated A+ by Standard and Poor’s.

Please let us know if you have further questions. We will continue to update you as more information comes to hand.
Yours sincerely,

Jim & Keryl Rickard
BUILTIN NEW ZEALAND LIMITED
0800 284 584

 

 

 

CBL Insurance Limited (CBLI) Interim Liquidation – Update 6

CBLI (one of the insurers we use) was placed into interim liquidation on Friday evening. Since then we have been working hard to find alternative cover for our clients and to keep you informed as we receive updates from the interim liquidators.

HERE’S WHAT WE KNOW

  • Claims are being accepted and processed as normal
  • Claim payments will not be made while the company is in interim liquidation

 

HERE’S WHAT WE’VE DONE

  • Notified all affected clients & guarantee policyholders
  • Secured alternative cover for affected liability & indemnity clients
  • Secured an alternative insurer for new builders guarantees

QUESTIONS WE’VE ASKED

  • When is the interim liquidation likely to be concluded and an outcome known?

 

 

HERE’S WHAT WE’RE DOING

  • Placing clients’ liability & indemnity cover with an alternative insurer when requested
  • Seeking a solution for current builders guarantee policyholders

QUESTIONS WE’VE ANSWERED

1. What’s affected: This only affects guarantees, liability & indemnity cover underwritten by CBLI. Tools, vehicle, contract works and other cover is unaffected as this is placed with other insurers.
2. Is Builtin in liquidation: No, this interim liquidation relates to one of the insurers we use, CBL Insurance, only and we are trading as normal and placing business with other insurers.
3. Can you insure me elsewhere: Yes, we are putting clients’ liability & indemnity business with alternative, A-rated, licensed insurers. We can also now place new builders guarantees into Lloyds of London.

 

Please let us know if you have further questions. We will continue to update you as more information comes to hand.

 

Yours sincerely,

Jim & Keryl Rickard
BUILTIN NEW ZEALAND LIMITED
0800 284 584
104 Spring Street, Tauranga 3140

 

 Posted 27/02/18 at 3pm

We have this afternoon had the following response from the interim liquidator for CBL Insurance Limited (CBLI):

“In the event the policyholders cancel their insurance contracts, the Interim Liquidators are not in a position to refund any premium on a pro rata basis and any refunds potentially payable will rank as an unsecured creditor of the company in the event it is placed in liquidation.

All policies currently in force will remain in place and should policyholders have a claim under their policies, it will be processed by CBLI in the ordinary course of business.  However, it should be noted that the timing and quantum of payment under any policy a claim may be made under is uncertain at this time and as stated above, no claims can be paid while the company remains in interim liquidation.”

Should you wish to cancel your policy/policies with CBLI we have arranged an alternative insurer and can put cover in place from today.

We expect the cost of the new policy will be comparable to the premiums you have paid in the past for your cover with CBLI. The policy coverage is also of a similar nature. Full details of the policy wording and your premium will be confirmed as quickly as possible in the coming days. However, cover will be put in place immediately upon receipt of your authority. To do so please click here to complete the short form.

We’ll continue to update you as more information becomes available.

Yours sincerely,

Jim and Keryl Rickard

 

 

Posted 27/02/18 12am

Update on CBL interim liquidation
The liquidators for CBL Insurance Limited (CBLI) have advised us that:

  • while the company is in interim liquidation policyholders should still register new claims, and these will continue to be assessed
  • policyholders with current claims should also continue to keep CBLI up to date with all developments in respect of their claims
  • at this time no claim payments can be made by CBLI while the company remains in interim liquidation.

“Interim liquidators” are appointed to preserve the company’s assets pending the Court’s determination of whether or not to place the company into final liquidation.

As a result of the announcement CBL Insurance Limited’s financial strength rating has been downgraded to E (under regulatory supervision) by their ratings agency A.M. Best.

We are asking the liquidators when they expect to be able to announce the results of the interim liquidation and provide certainty around claims outcomes. Once we have been advised we’ll let you know.

What policies are affected?
Only liability, indemnity and guarantee policies insured by CBLI are affected. CBLI does not insure tools, vehicle or contract works policies, they are placed with other insurers, so remain completely unaffected.

What are your options?
We have spoken with an alternative insurer and can move your affected polices to them today should you wish to do so. This will be for the remaining term of your current cover. However, it will be at the policyholder’s cost. By 3pm today we will update you again with more information on how you can do this, so that you can make a more informed decision.

Yours sincerely,

Jim & Keryl Rickard
BUILTIN NEW ZEALAND LIMITED
0800 284 584
keryl@builtin.co.nz

Home

Posted 26/02/18 – 10pm

The liquidator sent an update out late tonight. We’ll email you tomorrow morning, after we’ve had a chance to fully reviewed it, with what it means for policyholders.

Yours sincerely,

Jim and Keryl Rickard

Posted 26/02/18 – 5pm

We have now spoken with the liquidator and they have committed to get back to us this evening with more detail. As soon as we have this we’ll let you know.

Yours sincerely,

Jim and Keryl Rickard

Posted 26/02/18 – 2pm

We are providing this update to advise you that CBL Insurance Limited have been placed into interim liquidation.

Once we became aware of this announcement we emailed the liquidators with the following questions:

a) what is the status of current policies
b) whether new business is still being accepted
c) the current status of claims that have been submitted
d) whether new claims will be considered/accepted.

We are currently awaiting their reply and will advise you immediately we hear from them.

This will be one of a regular series of updates we will send you as this situation unfolds. We will make sure you know what is happening, when it happens, and eventually what our overall response on your behalf will be.

In the meantime, we want to reassure you that Builtin will be conducting business as usual. Please do not hesitate to call if you have any queries.

Yours sincerely,

Jim and Keryl Rickard

Frequently Asked Questions

Question: My builder supplied the guarantee as part of building with them. Shouldn’t they be responsible for replacing it at their cost?

Answer: Your builder is not responsible for the current situation with CBL Insurance and your Homefirst Guarantee. According to the interim liquidators of CBL Insurance, while their review of CBL is ongoing your Homefirst Guarantee remains valid. Any decision about whether to purchase a new one rests with the Guarantee policyholder.

Question: Do you know how much the premium will be?

Answer: We have secured a substantial discount from Stamford and Lloyd’s of London for eligible Homefirst Guarantee policyholders who choose to purchase a replacement warranty. Eligible policyholders are those with homes still under construction or with homes that were completed in the last 12 months. Premiums are based on the value of the build contract price, and a table of these rates was supplied by email to affected Guarantee policyholders.

Question: Is there any chance of us getting a refund from CBL?

Answer: The interim liquidators are currently investigating CBL’s financial situation and will release their findings in due course. The availability and amount of any refund to affected policyholders will depend on the outcome of this investigation. Should the company be put into final liquidation, policyholders with refunds due or claims outstanding will become unsecured creditors.

 Please note, according to the interim liquidators of CBL Insurance, while their review of CBL is ongoing your Homefirst Guarantee remains valid.

Question: If I don’t purchase the “replacement home warranty”, will my home will no longer be under any sort of warranty?

Answer: According to the interim liquidators of CBL Insurance, while their review of CBL is ongoing your Homefirst Guarantee remains valid. Because they cannot say what the outcome of the review will be, we have secured an alternative warranty provider for those Homefirst Guarantee policyholders wishing to take out a replacement. Any decision about whether to purchase a new one rests with the Guarantee policyholder.

There are also implied warranties within the Building Act 2004 (sections 396-399) that apply to residential building work: https://www.building.govt.nz/projects-and-consents/why-contracts-are-valuable/implied-warranties-and-defects/.

Question: Is the premium for the new warranty a one-off payment or is it annual?

Answer: The premium is a one-off payment.

Question: So what you’re offering us is to pay the same amount for a similar level of insurance cover we’ve already paid you for. How can that be a good deal for us as customers? 

Answer: Because of the situation with CBL we’ve sourced an alternative warranty for affected Homefirst Guarantee policyholders and we’ve negotiated the lowest possible cost in light of these circumstances.  According to the interim liquidators of CBL Insurance, while their review of CBL is ongoing your Homefirst Guarantee remains valid. The choice of whether to purchase a replacement warranty rests with the Guarantee policyholder.

Question: How are others dealing with this unfortunate situation?

Answer: Everyone we have spoken with is understandably as frustrated as we are with this situation. Each affected person is making their own decision about how to respond and we cannot provide advice on this.

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