What you need to know when choosing a 10-year structural warranty provider
When you build a new property, it’s crucial that you ensure it has a structural warranty or new home warranty in place so you can sell it easily and protect the buyer. But with a range of warranty providers in the market, what do you need to know when choosing your 10-year structural warranty provider?
What is the purpose of a Structural Warranty?
You will need a structural warranty to protect 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 requirement to have one, so any future sales of the property aren’t jeopardised.
What types of projects does Build-Zone cover?
The first type of structural warranty covered by Build-Zone is the New Build Warranty, which is ideal for house-builders and developers who are looking for cover for their residential homes they are building, extending, or converting.
Developments benefiting from a Build-Zone new home warranty can expect cover for the following:
· The structure, including the foundations, load-bearing parts of the floors and staircases, and the roof covering
· The external finishing surface
· The glazed panels to the external doors and windows
· The floor decking
· Any detached garages and outbuildings*
*It is important to read the terms carefully, as garages and outbuildings may not be covered by certain warranties.
Build-Zone also offers Commercial Latent Defects Insurance for new commercial buildings, conversions, and mixed-use developments of different sizes. Some properties that fall under this category include offices, rental spaces, and accommodation spaces.
Another type of cover we offer is the Social Housing Warranty. This product is available for new builds and converted properties, and they must be owned by UK housing associations or by registered social landlords. This type of warranty is also available for regeneration developments and certain mixed-use buildings.
Build-Zone also provides Self-build Warranty & Custom Build Warranty products specially developed for individuals who want to construct their own homes. You can qualify for a self-build and custom build warranty when building new properties, conversions, renovations, or adding extensions to your property.
What isn’t covered under a structural warranty?
Before signing on the dotted line, look at the provider’s restrictions, usually within the small print.
Typical exclusions from a structural warranty include:
· Anything not considered a major damage defect, such as shrinkage cracks to walls and ceilings or damp from internal environmental conditions.
· Problems arising through a lack of appropriate maintenance or works commenced/modified after initial occupation.
· Some external works, for instance, steps and paving.
· Any contractual disputes you have with builders.
· Accidental or storm damage, which would be covered by buildings insurance.
If structural issues or significant damage arise in the first couple of years post-completion, the underwriter will usually refer you back to your builder to remedy the problem. However, if your builder has gone out of business or isn’t responsive, the underwriter will step in for qualifying claims. In years three to 10, the policy will automatically provide cover, with no complications relating to the original contractors.
How much does a structural warranty cost?
As a rule of thumb, budgeting 1% of your indicative build costs is a good idea. 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.
Why choose Build-Zone as your structural warranty provider?
One key advantage of our structural warranties is that our products are backed by ‘A’rated insurers. This is extremely important as un-rated insurers may quickly go into liquidation, leaving their policyholders without any cover. Since Build-Zone works with ‘A’rated insurers, you can depend on the insurance companies to pay the claim should you suffer an insured loss.
Build-Zone is also approved by the Chartered Trading Standards Institute and is an associate of UK Finance. That means our structural warranty enjoys wide lender approval in the United Kingdom and the Republic of Ireland.
We are committed to maintaining high standards and levels of quality, so we work directly with our insurer partners. Since Build-Zone doesn’t go through intermediaries, we secure better terms for the structural warranty products.
With a vast network of specially selected approved inspectors, specialist surveyors, engineers, and architects in the UK and assigned certifiers in Ireland, Build-Zone’s structural warranty products and latent defects insurance covers all types of projects and developments nationwide.
For more information on any of our structural warranty insurance policies, explore our products here: https://www.build-zone.com/structural-warranty