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The Financial Assistance Package fails to attract many leaky home owners

By Andrew Steele - 19 Jan 2012

The Department of Building and Housing's recently published statistics for leaky building claims illustrate that the number of leaky home owners taking up the FAP (the government's Financial Assistance Package) has been low at just 73 claims to date. Out of a total of 1,838 active claims that is a very low percentage of just 3.9%.

This statistic is not surprising given that many leaky home owners have a valid claim against the Council that can lead to an award of 100% of repair costs plus consequential costs (for example alternative accommodation) and general damages of between $15,000 and $25,000 for stress and anxiety. Unlike payments under the FAP, an award of damages is paid to the home owner and not to contractors.

The official figures also suggest a waning of confidence in the Weathertight Homes Tribunal with less than a third of claimants who chose to pursue their claim doing so through the Tribunal rather than alternative jurisdictions such as the District Court or the High Court.

The claims statistics can be reviewed at www.dbh.govt.nz/ws-claims.

 

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