1 00:00:00,160 --> 00:00:02,360 Speaker 1: Now there are homes that are concerns rather that the 2 00:00:02,400 --> 00:00:06,080 Speaker 1: government's proposed building overhaul might leave homeowners and the lurch. Essentially, 3 00:00:06,120 --> 00:00:07,720 Speaker 1: what the government's doing is they want to remove some 4 00:00:07,760 --> 00:00:11,200 Speaker 1: of the responsibility for defective buildings from councils and instead 5 00:00:11,240 --> 00:00:13,480 Speaker 1: make the builders and the traders and so on responsible 6 00:00:13,520 --> 00:00:15,120 Speaker 1: for their work. But that is where the plan hits 7 00:00:15,160 --> 00:00:18,439 Speaker 1: a snag. Genatives Traine as The Herald's Wellington Business editor 8 00:00:18,440 --> 00:00:22,360 Speaker 1: and with us Hello janee hi Heather. So in this case, 9 00:00:22,600 --> 00:00:25,200 Speaker 1: the trade's would have to be insured. But that's the problem, 10 00:00:25,320 --> 00:00:27,520 Speaker 1: right whether they can actually get insurance. 11 00:00:28,040 --> 00:00:31,200 Speaker 2: That's the thing. So if you are shifting the liability 12 00:00:31,560 --> 00:00:34,360 Speaker 2: to the people who cause the problem, the trade's and 13 00:00:34,400 --> 00:00:38,839 Speaker 2: so on, that's all fair and well. But these tradees 14 00:00:38,920 --> 00:00:41,440 Speaker 2: don't necessarily have deep pockets. So if you have a 15 00:00:41,440 --> 00:00:44,440 Speaker 2: problem with your with your home, you chase your builder. 16 00:00:45,159 --> 00:00:47,479 Speaker 2: Your builder can say that we're liquidating the company, or 17 00:00:47,640 --> 00:00:49,120 Speaker 2: it can or the builder can just say, look, we 18 00:00:49,159 --> 00:00:51,280 Speaker 2: can't pay we can't pay you. We're just two guys 19 00:00:52,040 --> 00:00:55,040 Speaker 2: and we can't pay you out. So then I guess 20 00:00:55,040 --> 00:00:58,160 Speaker 2: you go. Well, hopefully the builder has insurance. All the 21 00:00:58,200 --> 00:01:00,920 Speaker 2: builders offered you some sort of guarantee, warranty or whatever 22 00:01:01,000 --> 00:01:05,360 Speaker 2: on the building work. The government is looking at when 23 00:01:05,400 --> 00:01:07,960 Speaker 2: it makes this change. It's looking at making these consumer 24 00:01:08,040 --> 00:01:12,280 Speaker 2: protections mandatory. But I spoke to someone from the insurance industry, 25 00:01:12,360 --> 00:01:16,120 Speaker 2: Stanford Insurance director Duncan Colebrook. He's one of the guys 26 00:01:16,160 --> 00:01:20,720 Speaker 2: that provides this insurance cover for the builders, and he's saying, look, 27 00:01:20,720 --> 00:01:24,120 Speaker 2: we're not going to just ensure any old builder. You know, 28 00:01:24,280 --> 00:01:27,960 Speaker 2: they have a strong underwriting processes, and of course insurance 29 00:01:28,000 --> 00:01:31,959 Speaker 2: companies don't want to lose money. They can't just ensure everyone. 30 00:01:32,480 --> 00:01:36,280 Speaker 2: So the insurance industry doesn't seem to be that keen 31 00:01:36,440 --> 00:01:39,840 Speaker 2: on what the government's proposing because you know, they're not 32 00:01:39,880 --> 00:01:43,040 Speaker 2: going to provide blanket cover for every trader, every builder, 33 00:01:43,080 --> 00:01:43,840 Speaker 2: every building. 34 00:01:44,480 --> 00:01:45,760 Speaker 1: So what's the alternative. 35 00:01:47,160 --> 00:01:49,960 Speaker 2: Well, you know, this is all still being worked through, 36 00:01:50,160 --> 00:01:53,520 Speaker 2: but as it stands, it seems like there's a risk 37 00:01:53,680 --> 00:01:58,720 Speaker 2: that the homeowner will be exposed because if it is 38 00:01:58,760 --> 00:02:02,520 Speaker 2: not entirely ensured and the pockets of these builders and 39 00:02:02,560 --> 00:02:04,840 Speaker 2: things aren't that deep, then it could leave you in 40 00:02:04,880 --> 00:02:10,040 Speaker 2: the lurch. Duncan Colebrook, he from Stanford Insurance, said to me, well, 41 00:02:10,080 --> 00:02:13,880 Speaker 2: you know if the government wants to make the stuff mandatory, 42 00:02:14,040 --> 00:02:17,640 Speaker 2: like consumer protections mandatory, then maybe it needs to step 43 00:02:17,680 --> 00:02:21,080 Speaker 2: in and provide some sort of insurance cover. But you 44 00:02:21,120 --> 00:02:23,560 Speaker 2: know that he made the point that is the exact 45 00:02:23,600 --> 00:02:26,120 Speaker 2: thing the government is trying to avoid. You know, it's 46 00:02:26,160 --> 00:02:29,560 Speaker 2: trying to get rid of their liability on councils, which 47 00:02:29,639 --> 00:02:33,400 Speaker 2: kind of comes back on the government. So you're really 48 00:02:33,480 --> 00:02:36,240 Speaker 2: it does leave you in a sort of scratching your head. 49 00:02:37,040 --> 00:02:40,560 Speaker 2: Another insurance Brokerray spoke to Ben Recard. He said, well, 50 00:02:40,560 --> 00:02:44,320 Speaker 2: you know, insurans are hesitant about providing this kind of cover. 51 00:02:44,400 --> 00:02:47,359 Speaker 2: You know, it's specialist cover because normally an insurance company 52 00:02:47,360 --> 00:02:49,400 Speaker 2: provides cover for a year, like for your house, it 53 00:02:49,440 --> 00:02:51,680 Speaker 2: looks at the risk, provides cover for a year next year, 54 00:02:51,760 --> 00:02:55,080 Speaker 2: reassesses changes the premium, does it again. But this is 55 00:02:55,280 --> 00:02:57,600 Speaker 2: this type of stuff is for like ten years, you know, 56 00:02:57,639 --> 00:03:01,600 Speaker 2: so it's quite risky ten years. There's some hesitancy there. 57 00:03:01,639 --> 00:03:03,800 Speaker 1: But this goes some way to explaining why the government 58 00:03:03,919 --> 00:03:06,480 Speaker 1: only half announced the thing, right, because we were expecting 59 00:03:06,520 --> 00:03:10,480 Speaker 1: an announcement of yes, we're changing where the responsibility lies 60 00:03:10,560 --> 00:03:12,320 Speaker 1: and this is what's going to back it up. But 61 00:03:12,360 --> 00:03:14,360 Speaker 1: we only got the changing of the responsibility, not the 62 00:03:14,400 --> 00:03:16,320 Speaker 1: backing up because it's too complicated. 63 00:03:17,240 --> 00:03:22,200 Speaker 2: Well exactly. So. The theory is nice, let's not cripple counsels. 64 00:03:22,240 --> 00:03:24,560 Speaker 2: You know, with the leaky home saga many years ago, 65 00:03:24,639 --> 00:03:27,520 Speaker 2: councils get left with this big bill, rate payers end 66 00:03:27,560 --> 00:03:29,680 Speaker 2: up paying for it. It sounds nice. We all like that, 67 00:03:29,760 --> 00:03:34,280 Speaker 2: make the bill, the make the naughty people pay. But 68 00:03:34,320 --> 00:03:36,560 Speaker 2: there's some fundamental details there. 69 00:03:36,680 --> 00:03:36,880 Speaker 1: You know. 70 00:03:36,920 --> 00:03:39,440 Speaker 2: If the insurance industry is not rushing in to say 71 00:03:39,520 --> 00:03:43,000 Speaker 2: that's that's fine with us, then I still have major 72 00:03:43,080 --> 00:03:45,200 Speaker 2: questions of exactly how this is going to work. 73 00:03:45,280 --> 00:03:47,080 Speaker 1: Yeah, totally all right, let's see what they come up with. 74 00:03:47,160 --> 00:03:48,880 Speaker 1: We'll have to wait for Chris Pink to figure it out. 75 00:03:48,920 --> 00:03:51,000 Speaker 1: Thank you so much to know I appreciate it. Jenative Schraney, 76 00:03:51,000 --> 00:03:52,520 Speaker 1: the Herald's Wellington Business editor. 77 00:03:53,280 --> 00:03:56,480 Speaker 2: For more from Heather Duplicy Allan Drive, listen live to 78 00:03:56,560 --> 00:03:57,080 Speaker 2: news talks. 79 00:03:57,120 --> 00:04:00,000 Speaker 1: It'd be from four pm weekdays, or follow the PODCAS 80 00:04:00,080 --> 00:04:01,400 Speaker 1: cast on iHeartRadio.