Weathertight service sees claims rise

This is a part of the Weathertightness feature

By Jeff Montgomery - 1 August 2010, Build 119

Auckland tops the list of active claims with the Weathertight Homes Resolution Service. New applications continue to be lodged, some encouraged by the new government assistance package.

A total of 6,043 weathertightness claims for 7,804 properties had been lodged with the Department of Building and Housing’s Weathertight Homes Resolution Service (WHRS) to 31 May 2010. Assessments have been completed on 8,079 properties.

In Auckland City, 715 claims are currently active, representing 1,965 properties – some are multiple units in buildings where one claim is entered for all properties.

Figures show that other areas in the Auckland region are also affected, with 200 active claims on the North Shore and 188 in Waitakere. Wellington city also had 162 active claims to 31 March 2010.

New financial assistance package

On 17 May 2010, the government announced its financial assistance package to help people get their leaky homes fixed faster.

Minister for Building and Construction Maurice Williamson said the package was about the government stepping up and tackling an important issue. He announced the package along with Prime Minister John Key, Auckland City Mayor John Banks and Wellington Mayor Kerry Prendergast.

The proposed package will see the government pay 25% of the cost of repairs, with councils also paying 25% and homeowners 50%, underwritten by a government loan guarantee.

On 1 June, Local Government New Zealand formally advised the government that eight local councils in the most directly affected communities had agreed to support the package in principle and would work with the government on developing the operational details.

Figure 1: Total claims received by the Weathertight Homes Resolution Service at 31 May 2010.

The eight councils are Auckland, Christchurch, Manukau, Waitakere, North Shore, Tauranga, Wellington and Rodney District. Collectively, these councils cover around 90% of current leaky home claims. Several other councils have also agreed to support the package.

The government aims to have the package up and running early next year, and it is currently working with local authorities and banks on the details.

Make a claim to ‘stop the clock’

In the meantime, anyone who suspects they may have a leaky home is encouraged to make an application to the Department of Building and Housing. Claims must be made within 10 years of building work being completed − making a claim now will ‘stop the clock’ on homes nearing the 10-year limit.

Since the financial assistance package was announced, the Department has responded to more than 1,400 calls requesting further information. Several new applications have also been made to ‘stop the clock’.

Common causes of leaks

According to assessments, the most common causes of leaks are:

lack of or inadequate flashings
reliance on sealants for waterproofing
insufficient clearance of cladding to the ground or over a deck/roof surface
uncapped flat-topped parapets
absence of eaves
lack of movement control joints
lack of adequate threshold between inside and outside
skylights
penetrations through claddings, wall and roof junctions
balconies that are non-drained, have no overflow or have a lack of fall
inadequate maintenance.

Figure 2: Active claims with Weathertight Homes Resolution Service at 31 May 2010.

Assessment and eligibility

There are two report options for homeowners:

A full assessment report identifies the actual and potential weathertightness damage, necessary repairs, cost of repairs and parties that the assessor considers should be involved in the resolution process. It costs the homeowner $500 for a stand-alone property or single-unit claim, $1,000 for a duplex (two units) or $1,500 for a multi-unit complex.
An eligibility assessment report is limited to deciding eligibility only. The eligibility criteria include determining whether the dwelling has damage caused by external leaking and whether the property was built or altered within the required 10-year period. This report is free.

Final numbers uncertain

A report by PricewaterhouseCoopers into the size and cost of the weathertightness problem was released in 2009.

The report said that between 22,000 and 89,000 homes around New Zealand may be affected by weathertightness problems. The range reflects the uncertainty about the actual number of homes affected.

The report gave a ‘consensus forecast’ that approximately 42,000 homes built between 1992 and 2005 are affected.

Approximately 70% of the 23,500 homes eligible under the government’s financial assistance package are expected to be fixed.