Frequently Asked Questions
Find answers to common questions about the Rex Warranty, including cover limits, eligibility, claims process, legal support, exclusions, and how it works alongside NHBRC protection for homeowners and body corporates.
Q: Why do I need a Rex Warranty?
A: The NHBRC warranty provides limited cover for major structural defects, both in duration (five years from date of occupation) and value (up to R500,000). The Rex Warranty enhances this protection by extending the cover limit up to R5 million and providing additional cover for a further five years, provided the property is registered with Rex within the first three years after occupation. In addition, Rex offers claims administration support by assisting with the submission of your claim to the NHBRC on your behalf.
Q: Will my claim still be paid by Rex if it is rejected by the NHBRC?
A: No. The Rex Warranty is a value-added product that provides additional cover for valid claims accepted under the NHBRC warranty, specifically for amounts exceeding the NHBRC’s limit of R500,000. Claims rejected by the NHBRC do not qualify for cover under the Rex Warranty.
Q: What legal costs are covered, up to R50,000?
A: In the event of a claim, Rex will first engage with the builder as the primary point of contact. Where legal intervention is required to prompt action, the allocated legal benefit may be used to appoint an attorney to issue a formal letter of demand. If the matter escalates to the NHBRC, legal costs may also cover attorney correspondence with the NHBRC, where necessary, to help facilitate and expedite the claims process.
Q: What is a major structural defect?
A: A major structural defect is a defect in the structural elements of a home, such as foundations, load-bearing walls, columns, beams, or slabs, that results in or is likely to result in structural failure. These defects are typically caused by inadequate design, poor workmanship, or defective materials and may compromise the stability or safety of the building.
Q: How likely is it that my home will have a major structural problem?
A: While major structural defects are not common, the risk does exist. In some cases, inadequate oversight during construction may allow defects to go unnoticed. These issues often only become apparent after occupation and can result in significant financial and safety implications.
Q: What is the difference between short-term building insurance and the Rex Warranty?
A: Short-term building insurance covers the physical structure of your home against sudden and unforeseen damage, such as fire, storms, or burst pipes. It does not cover gradual deterioration or major structural defects. The NHBRC provides limited cover for major structural defects up to R500,000. The Rex Warranty acts as a top-up cover, applying once the NHBRC limit has been exhausted, and covers the remaining cost of valid claims up to R4.5 million, including claims administration support.
Q: Are minor defects and/or plumbing and electrical work covered under the warranty?
A: No. The Rex Warranty only covers major structural defects, including roof leaks where these are directly attributable to a structural defect. It does not cover minor defects or non-structural items such as plumbing or electrical work.
Q: Are minor defects and/or plumbing and electrical work covered under the warranty?
A: No. The Rex Warranty only covers major structural defects, including roof leaks where these are directly attributable to a structural defect. It does not cover minor defects or non-structural items such as plumbing or electrical work.