An insulation statement is now compulsory on all new tenancy agreements signed since 1 July 2016.
In it the landlord must disclose whether there is insulation in the rental home, where it is, what type and what condition it is in so that the tenant can make an informed decision. Insulation will be compulsory in all rental homes from 1 July 2019.
A landlord who does not make a complete insulation statement or includes anything they know to be false or misleading is committing an unlawful act and may be liable for a penalty of up to $500.
An insulation statement must include:
- whether or not there is insulation
- where it is – the extent and location in ceilings, floors or walls and in rooms or parts of rooms
- what type of insulation product it is and, if known, its level of thermal resistance or R-value
- what condition the insulation is in – for instance whether there is any damage or dampness and whether any is not secured.
If the landlord cannot get information about insulation in a particular location, the insulation statement must instead:
- outline what information is missing about that location
- outline why the landlord could not get that information
- confirm that the landlord has made all reasonable efforts to get that information.
The insulation statement section of the tenancy agreement must be signed by the landlord separately, in addition to the signatures to the whole agreement.
If the rental home is social housing with a tenant who pays an income-related rent, ceiling and underfloor insulation has been compulsory where reasonably practicable since 1 July 2016. If the existing insulation does not meet the requirements of the regulations, the insulation statement must explain:
- how the landlord will comply with insulation regulations by the 90th day after the start of the tenancy, or what circumstances give rise to an exclusion.
How to write an insulation statement for a tenancy agreement has examples of how write your insulation statement and how not to on our tenancy agreement template.
How to get information about insulation
Be careful when checking insulation. Do not touch foil insulation without turning off the power at the mains first as there is an electrocution risk. The installation or repair of foil insulation is banned in all residences including rental homes.
Insulation safety has more information on the risks with installing and repairing insulation.
If you're not sure of the location, type and condition of the insulation, seek advice from a professional insulation installer.
Ask for written information to complete the insulation statement. Some companies may do this at no cost or there may be a small charge.
They will also be able to advise and give you a quote if the insulation needs work to meet the regulations that come into force on 1 July 2019, when insulation becomes compulsory in all rental homes.
When contacting an insulation company, ask them if their installers have trained with the Insulation Association of New Zealand (IAONZ).
Consulting a professional early means you will avoid a last-minute rush – there are penalties of up to $4,000 for landlords who do not have the right insulation installed by 1 July 2019.