'A'Rated Protection for Single Builds to Small Developments
Updated: Mar 31, 2022
Research is key when selecting insurances and a structural warranty for your new home or housing development. The higher the financial rating of an insurance company, the less likely it is that it will suffer financial problems and cease operating. As an insurance customer, you need to research companies that you know will pay out in the unfortunate case of a claim.
Having an 'A' Rated capacity of any nature is extremely difficult to achieve and means the credit agencies deem the insurance business to be on a strong financial footing. In the event of a claim, it’s your insurer who is responsible for paying – so you need to be confident that they can. An 'A' Rated insurance company has been and will continue to be, assessed by leading international rating agencies such A.M. Best, Fitch, Moody’s or Standard & Poor’s (S&P). These agencies carry out a thorough assessment of the insurer's long-term financial strength and its subsequent ability to pay valid claims. A lower-rated insurer, such as a ‘B’ or ‘C’, is deemed to have a poorer ability to settle claims.
Un-rated insurers could pose a greater risk because they have not been rated in terms of their financial strength and some foreign insurers are not subject to UK or EU insurance regulations. They may present a greater risk of failure, leaving customers uninsured and exposed to financial loss.
Build-Zone only uses secure, 'A' Rated insurers, to provide peace of mind in a market that over the last few years has seen a number of unrated insurers go into liquidation, leaving their customers without cover. This, in turn, has left their policyholders without a valid warranty, breaching their mortgage terms.
Our range of warranties are effective for 10 to 12 years from the date of practical completion, so these are considered long-term policies, so it’s wise to choose an 'A' Rated insurer to give you the confidence that your protection is in place for the long haul.
Peter Richardson, Managing Director, Build-Zone comments:
“In the UK there isn’t a legal requirement for an insurer to be rated, and brokers, like us, aren’t required to only offer products and services from rated insurers only. Although both rated and unrated insurers are capable of collapsing, statistically, it is the un-rated insurers that present a greater risk.
Build-Zone signed an exclusive deal with another 'A' Rated insurer back in November, strengthening our offering even further. Deemed as another significant step, this has meant we can continue to offer Developers, Contractors, Home Owners, Investors, Lenders, Architects, Project Managers and Structural Engineers the long-term protection their Developments & Homes require.”
A-rated insurer-backed structural warranties
Build-Zone offers 'A' Rated Insurer-backed structural warranties for New Homes, Commercial, Mixed-Use, Build to Rent, Social Housing, Self-Build, and Custom Build schemes together with their leading technical services company, Build-Zone Survey Services Ltd.
Site insurance and structural warranties are both forms of project insurance and can often be purchased from a single, specialist insurance provider. However, it should be noted that they are completely different products: site insurance will protect against issues arising on site before and during your build, whereas a structural warranty is there to cover you for any failure in the building structure after it has been completed.
You will need a structural warranty to gain protection against any fundamental structural problems with the building, typically for up to 10 years. Mortgage lenders will insist on a warranty, but even if you are funding your build with cash, it’s still a standard requirement to have one, so any future sales of the property aren’t jeopardised.
How much does a structural warranty cost?
As a rule of thumb, it’s usually a good idea to budget 1% of your indicative build costs. This will be payable ahead of any work whatsoever occurring on site. A retrospective structural warranty is much harder to get, so any decisions around insurance should be made right at the beginning of your project.
For more information on any of our structural warranty insurance policies, explore our products here: https://www.build-zone.com/structural-warranty