Frequently Asked Questions

BondAssist is a Tenancy Guarantee issued by CBL Insurance Limited (a registered Insurance Company formed in 1973) that provides the Landlord with up to 5 weeks bond cover or $5,000, (whichever is less) for an approved Tenant in the form of an irrevocable Guarantee.

*Irrevocable means that once issued the Guarantee cannot be amended or cancelled by anyone (including us) without the landlord’s permission.

You receive up to 5 weeks bond cover, maximum of $5,000, instead of 4 weeks or less.

BondAssist can also be combined with a traditional bond for even greater protection.

*Since Guarantees are permitted under the RTAA 2010, BondAssist is not subject to the maximum cap of 4 weeks imposed on bond. By definition, BondAssist is a Guarantee, not a bond.

Some landlords are of the view that only tenants who can front up with 4 weeks cash bond will have an incentive to look after the property…

We strongly disagree. Given that we guarantee the performance of the tenant, tenants must satisfy NZG credit criteria. Most of our tenants have alternate financial options available, however, for whatever reason, choose not to lock away 4 weeks bond.

Also, a tenant is more likely to care for a property where a large insurance company is going to aggressively recover back from them where a claim is paid.

Simply offer your tenants the choice of A) lodging 4 weeks bond with the DBH or B) purchasing BondAssist. BondAssist means less upfront costs for your tenants, but more cover for you. You can also request a combination of cash bond and BondAssist.

When agreeing the amount of BondAssist cover required, you may request any amount up to 5 weeks rent or $5,000, whichever is less. It does not have to be 5 x weekly rent; it can be less. The choice is yours.

Where you wish to combine BondAssist with a traditional DBH bond, the maximum you can ask your tenant to lodge with the DBH is 4 weeks. This is in addition to any BondAssist cover agreed with your tenant

The Guarantee will expire after three years, but an application can be submitted for an additional 3 years’ cover, otherwise your tenant can lodge a bond with the Department of Building and Housing.

The tenant pays a single fee at the commencement of the tenancy for the issue of the Guarantee.

There is no administration, invoices to pay, reconciliations etc for the landlord.

3 years cover will cost 23% (including GST) of the selected cover amount.

Example: $1500 bond cover will cost your tenant $345 (works out as little as $2.21 per week over the 3 year period)

Tenants applying for BondAssist are subject to NZG credit criteria and terms and conditions. The minimum age is 20 years.

We can use your standard tenancy application forms and assist to integrate our tenant assessment into your daily procedures.  

The Landlord is the beneficiary to the Guarantee. All Tenants shown on the Tenancy Agreement will be jointly and severally liable under the Guarantee. Flat mates are not subject to the Guarantee. 

The Guarantee is irrevocable and cannot be cancelled or amended during the term of the tenancy. The Guarantee is subject to tenant assessment and approval, therefore we are unable to remove or replace tenants during the term of the tenancy as it changes the risk profile.

Note: We are Guaranteeing the performance of a tenant(s), not the performance of a property.

Rent can be increased during the term of the tenancy; however the maximum liability amount shown on the Guarantee Certificate will remain the same.

Note: Rent increases are usually nominal and if required you can request the tenant to lodge DBH bond to cover the increase.

Yes, provided there are no rent arrears at the time of purchasing BondAssist and you conduct an inspection with your Tenant you can offer your Tenant the opportunity to recover their existing bond, using a portion of the refund for the purchase of BondAssist. Your tenant gets some cash back and you increase your cover. 

At the end of the tenancy the Guarantee is cancelled and where the Tenant(s) have breached the terms of the Tenancy Agreement you are entitled to make a claim up to the Maximum Liability Amount shown on the Guarantee Certificate.

If you are unable to resolve the claim directly with your Tenant, you can claim against the Guarantee by completing a claim form and attaching a meditated or adjudicated Tribunal Order.

The requirement for a Tribunal Order may be waived where the amount is small and not in dispute. BondAssist does not mediate claims between Tenants and Landlords. 

Yes. S18A of the Act specifically excludes a prohibition on guarantees. By implication the Act permits Landlords to obtain guarantees in respect of Tenants obligations. The BondAssist is a financial guarantee by definition and therefore on the basis of S18A permitted under the Act.

BondAssist Tenancy Guarantees are issued by CBL Insurance Limited (CBL), a registered insurance company formed in 1973 with representative offices in London, Atlanta, Copenhagen and Kuala Lumpur. CBL has an International Financial rating of B+ (Good) issued by AM Best, and BB+ (Stable) issued by Standard and Poor’s.