New Zealand homeowners embroiled in the national “leaky buildings” crisis have been warned they will have to pay for some repair costs, regardless of what a Government review finds.

But Wellington’s Dominion Post newspaper says Building Issues Minister Maurice Williamson has given the first indication that the Government could contribute towards repairs.

Many NZ homes built in the 1990s have developed problems related to leaks, due to faulty construction and materials. Apart from causing wood to rot, mould resulting from the dampness has been associated with health concerns such as respiratory and skin problems.

Mr Williamson told the NZ Parliament social services committee last week that the repair bill is now likely to top $NZ4 billion ($3.17 billion), and the Government wants to focus on fixing homes. The Cabinet will discuss financing proposals in the next two months.

In April, insuranceNEWS.com.au reported Vero NZ will rely on a standard policy exclusion to beat a Supreme Court challenge from Symphony Property Development over a leaky Auckland apartment block.

The leaks cost about $NZ13 million ($10.3 million) to repair, and Symphony has launched legal action against seven parties – including Vero as the building’s insurer – to pay for the repairs.

Last year a Court of Appeal decision found in favour of Vero, but last week Symphony won the right to appeal to the Supreme Court.

Vero NZ CEO Roger Bell told insuranceNEWS.com.au the insurer has simply invoked a standard exclusion against problems arising from construction.

“It is a standard exclusion regarding the egress of water through gradual deterioration, we have invoked that and will now await judgement,” he said. “We traditionally exclude this type of event, and the court has previously upheld that exclusion.

“It’s hard to get past a known exclusion. We don’t cover rot.”