The announcement from The Supreme Court with relation to Business Interruption Claims for those affected by Covid-19 had led to a spike in calls to our claims lines. Please read our update here for more information.
Structural Warranty Insurance is a policy that protects against defects in new buildings for a period of usually 10 or 12 years after completion.
Whilst policies are usually purchased by developers before construction begins, it’s actually there to protect the homeowner from structural damage that may occur within the 10 or 12 year period after it has been completed.
A Structural Warranty Insurance policy can vary according to your needs but can include:
Deposit Protection or Contractor Insolvency – protecting against the loss of deposits should the Contractors become insolvent during the build
Defects Insurance – Usually provided for 2 years which can include non-structural damage
Structural Insurance – the remaining 8 or 10 years of cover for structural issues
Building Control Services
The Alan Boswell Group Difference
As independent brokers we are able to access numerous specialist providers, to provide fair and impartial advice on the best provider for you.
Understanding which providers use their own Technical Handbook or that accept works to Building Regulation Standards as being sufficient as well as being able to report on which lenders accept which provider can ensure that you don’t make costly mistakes when arranging cover.
Structural Warranty Insurance in detail
We have the ability to place and arrange cover for a vast array of projects and builds. We have providers able to cover new speculative developments, redevelopments including change of use and cover for completed projects. We can help with arranging cover for both Commercial and Residential projects.
Building Control Services – Combing the surveys for Building Control and for the Structural Warranties can reduce demands of your time on site. Some providers are able to provide quotations to amalgamate the Building Control with the required inspections for the Warranties.
Defect Cover – includes Load Bearing Foundations, Roof Coverings, Load Bearing Walls, Partitions, Floors and Staircases, Roof Framing Systems, Loadbearing Lintels and Chimneys & Flues.
Debris Removal Cover – included within the cover provided for the structure
Professionals Fees – Fees such as architects, surveyors, legal, consulting engineers and other fees necessarily and reasonably incurred in relation to the complete or partial rebuilding or rectifying work to your home are generally covered
Contamination Cover – cover can include the cost of remediation expenses incurred in compliance with a Statutory Notice in respect of contamination of the Policyholder’s land (if an Approved Inspector carried out Building Control)
Non Compliance with Building regulations – cover can include the cost of repairs where there is a danger to the physical health and safety of occupants because the property does not comply with Building Regulations
Alternative Accommodation – Policies can include cover for Alternative Accommodation costs and expenses in respect of removal and storage if your home is uninhabitable as a result of the insured defect
The key advantages of Structural Warranty insurance are for the end purchaser as there is no need to establish who’s at fault and for complex litigation, in the event, there is a structural defect. The policies transfer automatically between owners.
Policy cover includes the cost of complete or partial rebuilding or rectifying work to the property which has been affected by major damage by an insured defect.
Policies are designed to cover the cost of making good any defect in the design, materials or workmanship in the newly constructed or altered drainage system.
This includes the necessary and reasonable costs of repairing, replacing or rectifying any part of the waterproof envelope of the property home as a result of ingress of water caused by a defect in the design, workmanship, materials or components of the waterproofing elements of the property.
We only deal with A-rated providers from reputable insurers with experience in the sector. The recent liquidation of Alpha Insurance A/S who provided the capacity for one of the UK providers has demonstrated the need for confidence in your insurers and the 10-12 year policy duration and long tail nature of potential claims only reinforces this.
FAQs
Yes, in essence, it is, specifically tailored to covering structural damage as a result of an inherent or latent defect for a property.
Many lenders require a 10 Year Structural Warranty policy on new build and renovated projects. Without a Warranty you may be limiting your potential market of buyers. A fairly recent court case highlighted some of the problems associated with reliance on Architects Certificates. They are an extension of the Architects professional indemnity cover and as such you will need to be able to prove they were professionally negligent. Additionally, if the Architect is no longer in practise or fails to renew their cover it can often lead to no protection. For more information: https://www.thenbs.com/knowledge/court-of-appeal-provides-clarity-on-architects-certificates
We have providers able to cover completed projects, or partially completed projects.
Yes, cover for insolvency is available on some contract.
Yes, we provide cover on most types of development from single units to mainstream apartment developments, conversions and change of use, mixed use, commercial, extensions and renovations.
Yes, we think you should because they are both very different in what they provide. A buildings insurance policy provides cover in the event of fire, subsidence, lightning, explosion, storm damage etc., but specifically exclude damage caused by faulty or unsuitable materials, design or poor workmanship. Which is why you should consider purchasing a structural warranty policy as well as buildings insurance.
No, it is simply a certificate issued by the building control inspecting party to confirm that the property meets the requirements of the Building Regulations with regard to Health and Safety.
Structural Warranty Insurance is sometimes also known as Structural Defect, Latent Defects Insurance, Building Warranty, Home Warranty, Construction Insurance and Self Build Insurance. It’s important to understand what’s being provided and that’s where a broker such as ourselves can help.
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