Why do I need a structural warranty on new build houses?
A structural warranty is an insurance policy designed to protect homeowners of new build houses from structural defects in design, quality and materials. It offers peace of mind and provides them with financial protection if there are significant issues with the structural integrity of their property.
Structural warranty new build houses: Photo credit: Clare Louise Jackson Shutterstock.
A structural warranty, or latent or inherent defects insurance, typically lasts 10-12 years after practical completion. You can obtain a structural warranty for various types of construction, such as residential, commercial, mixed-use, social housing, and student accommodation, as well as for self and custom-build projects.
If you want to sell a new home, including newly converted homes under ten years old, on the open market, you will need a structural warranty in line with the mortgage lender's requirements. The structural warranty provider you choose must be approved by lenders in the UK so that you can sell the property upon completion.
Although a New Home Warranty isn’t required by law, most mortgage lenders consider this type of cover on the build mandatory when they consider lending to potential homeowners, meaning they won’t provide a mortgage until the developer has acquired a New Home Warranty.
To determine if mortgage lenders accept your selected structural warranty provider, please cross-check their information with the approved lender list on the UK finance website (previously known as the Council of Mortgage Lenders CML).
With the right policy in place, buyers can enjoy peace of mind knowing they are protected against potentially costly structural defects. However, it is essential to understand what is covered under any given policy before signing up, as not all policies are equal. Considering this can help you find the right Structural Warranty for your new build property.
What is covered under a structural warranty in the UK?
Generally, structural warranties cover the following:
- Structural defects due to defective design, materials or quality
- Issues related to poor ground conditions
- Damage caused by incorrect construction methods
- Cost of making good or remedying faulty construction.
Features of the Build-Zone New Home Warranty:
No membership or registration fees
Accepted by the majority of lenders in the UK and an associate of UK Finance
We can consider covering part-completed or completed projects subject to survey reports being provided for assessment.
Fast quotation turnaround
Quick response from professional, nationwide technical auditing/survey service
Flexible payment method
10-year structural warranty cover
Full risk transfer in years 3-10 of cover
Cover available for mixed-use developments
Cover as standard for alternative accommodation, additional costs, debris removal, and professional fees.
The warranty is underwritten by an ‘A’ rated global insurer & each case is subject to full technical review by Build-Zone Survey Services Limited to minimise defects right from the design stage.
If you're looking for a New Home Warranty provider, It's important to choose an 'A' rated insurance provider such as Build-Zone to avoid being left uninsured if they exit the market. This could put you in breach of your mortgage or leave you responsible for structural defect costs.
Investing in a structural warranty will assure you that your home is covered from undue defects. While various insurance options are available for new build homeowners, a structural warranty policy is the most comprehensive and cost-effective choice.