Toxic mould is costing United States insurers hundreds of millions of dollars, and now the industry’s fear of the syndrome has spread to New Zealand. Last week another major building certifier closed its doors in the face of huge professional indemnity premium increases – where there is cover available – being forced on the industry.

As many as six certifiers and house inspection firms – whose work is central to the NZ building industry – have folded during the past year because insurers are refusing coverage after a spate of claims for leaky buildings.

The second-largest certifier, A1, was forced to close last October by the Building Industry Authority after the company failed to find cover. Now Auckland company Rob Woodger Ltd has announced it will close in May for the same reason – a lack of available cover.

Brokers say certifiers’ premiums have risen by as much as $200,000.

Last week the NZ Government announced it is considering a levy on the entire building industry to create a new insurance fund. Commerce Minister Lianne Dalziel says the Government will also tighten up on standards and regulation, with builders being registered and consumer protection being given greater emphasis.

Whether that will be enough to settle the building industry’s sudden fear of ruin – and attract new capacity into the market – will take some time to ascertain.