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:
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.
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.
Some of the providers we work with can combine the Building Control Services with the required inspections for the Warranties.
Structural Warranties are designed to cover a wide range of defects including Load Bearing Foundations, Roof Coverings, Load Bearing Walls, Partitions, Floors and Staircases, Roof Framing Systems, Loadbearing Lintels and Chimneys & Flues.
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.
The 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).
The 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 (if an Approved Inspector carried out Building Control).
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.
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.
Costs and expenses incurred by you for the removal of debris, dismantling or demolishing, and shoring up as a result of the insured defect.
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.
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.