Deposit & Non-Completion Cover
Protect your build before completion
Building or renovating is a major investment, and the journey starts long before the keys are handed over.
Halo’s optional Pre-Practical Completion Cover helps protect homeowners from unexpected financial loss if a builder becomes insolvent during the build process.
Available as an optional extension to the Halo 10-Year Residential Guarantee, this cover includes:
- Deposit Cover
- Non-Completion Cover
What is Pre-Practical Completion Cover?
Residential guarantees normally start once the build is complete. With Halo, optional deposit and non-completion cover can provide protection from the very beginning of your project.
Pre-Practical Completion Cover is designed to protect homeowners before practical completion, during the construction phase when deposits have been paid and building work is underway.
This optional extension helps provide financial protection if your builder suffers an insolvency event during the build.
Only available with the Halo 10-Year Residential Guarantee, this cover must be selected before work begins.
Two Types of Cover
Deposit Cover
Protects your deposit before substantial building work begins.
If you’ve paid a deposit to your builder and they suffer an insolvency event before substantial works commence, Halo may reimburse your lost deposit.
Cover limits:
- Up to 5% of the building contract value
- Maximum of $50,000 including GST
Typical examples:
- Building plans completed
- Deposit paid
- Work scheduled to begin
- Builder becomes insolvent before construction starts
Non-Completion Cover
Helps cover additional costs if your build can’t be completed by the original builder.
If substantial works have started and your builder suffers an insolvency event before practical completion, Halo may help cover the additional cost of engaging a replacement NZCB builder.
Cover limits:
- Up to 10% of the building contract value
- Maximum of $250,000 including GST
Typical examples:
- Construction partially completed
- Original builder unable to continue
- Replacement builder required to finish the project
How the cover works
1. Choose Halo Cover
Your NZCB builder helps arrange your Halo 10-Year Residential Guarantee.
2. Add Pre-Practical Completion Cover
Optional Deposit and Non-Completion Cover must be selected before work begins.
3. Build with confidence
Your project proceeds with added financial protection during construction.
4. Halo steps in if needed
If your builder suffers an insolvency event, Halo works with you through the claims process and may help arrange a replacement NZCB builder.
A real-world example
Imagine you’re building your dream home.
Your builder completes part of the project before unexpectedly becoming insolvent. You’ve already paid for completed work, but the remaining construction costs are now higher than your original contract value.
If it costs more to engage a replacement NZCB builder to complete the project, Halo’s Non-Completion Cover may help cover the difference, subject to policy limits and terms.
Frequently Asked Questions
The cover applies before practical completion and only if the optional extension has been selected and accepted by Halo before work starts.
No. Deposit and Non-Completion Cover is an optional extension to the Halo 10-Year Residential Guarantee.
Yes. Some exclusions apply, including:
- labour-only contracts
- multi-unit developments over specified limits
- portable/modular homes
- scheduled advance payments
- projects outside Halo eligibility criteria
Homeowners must notify Halo within specific timeframes if they believe a claim may arise.
Backed by NZCB Standards
Halo is only available through approved NZCB builders.
That means your builder has met NZCB’s strict membership standards for workmanship, qualifications, and business credibility.
Combined with Halo’s independent third-party protection, it’s designed to give homeowners greater confidence throughout the building journey.
Build with greater confidence
Protect your project from day one with Halo’s optional Deposit and Non-Completion Cover.