MEDIA STATEMENT: Substandard Steel Mesh - ICNZ reassures homeowners
The following can be attributed to Tim Grafton, Insurance Council Chief Executive:
“People with home and contents insurance in houses built with steel slabs using sub-standard steel mesh in the last four
years should not be unduly concerned about their insurance coverage.
Yesterday, a class action lawyer was reported as saying that unnamed insurers in London had said the use of this mesh
could compromise house insurance.
If homeowners do have concerns that they have substandard steel mesh used in their slabs they should contact their
insurer.
However, The Ministry of Business Innovation and Employment (MBIE) has also advised that houses that have used products
in floor slabs that have not met this standard does not mean that they have not met the Building Code. This is because a
number of factors will be assessed when determining the overall resilience of a house. In March, MBIE advised Building
Consent Authorities that, in its view, if a house has obtained a Code of Compliance Certificate from them there is no
need to take any action because the house will still meet the structural (as well as the life safety) requirements of
the Building Code.
Insurers will typically be reliant on Code Compliance Certificates issued by councils to provide them with confidence
around the structural integrity.
Steel mesh standards were increased after the Canterbury earthquakes as a measure to reduce the level of damage in
future events.
Steel mesh sold in New Zealand must comply with the Australia/New Zealand standard (AS/NZ 4671:2001). The Commerce
Commission tested a small sample of steel manufactured by a number of companies earlier this year which did not meet
this standard.
It said at the time that the tests alone did not establish non-compliance, but showed that the sheets of mesh tested
failed the testing. The Commission also tested a sample of steel mesh from Fletcher Building. Those tests did not raise
concerns.
In general, home insurance policies don't provide cover for faults in materials, but will cover resultant damage.” ends