A building warranty provides ample financial protection for developers, contractors, investors, and homeowners. Should anything unforeseen occur with a property, the insurance policy should be able to cover the cost of repairs.
But, there are several different types of building warranties, so which one is best for you and why should you get one?
Read on to find out.
What is a structural warranty?
A structural warranty is a type of insurance policy that protects you against structural defects in a new-build property. If your building develops problems months or years after construction has been completed and they’re a result of poor workmanship, materials or design, your insurance policy will cover the cost of repairs.
A structural warranty usually provides cover for 10-12 years from the date on the Building Control Completion Certificate, providing homeowners with plenty of coverage and financial protection.
What type of structural defects does the insurance policy cover?
A structural defects insurance policy covers:
- The cost to fully or partially rebuild a building as a result of structural defects
- Costs to repair damage caused by water because of poor design, construction methods, or materials
- Costs to repair issues caused by the drainage system
- Insolvency of the developer
- Contaminated land cover
- Alternative accommodation costs
- Removal of debris
What isn’t covered?
While a structural building warranty does cover a lot of problems, there are a few things it doesn’t. They include:
- Non-approved alterations to the property, such as extensions
- Wear and tear
- Fixtures and fittings
- Accidental damage, weather damage, vandalism, arson, etc.
What are the different types of building warranties?
Fortunately, there are several different types of building warranties to choose from, depending on the type of project you’re involved with.
Whether you need a standard structural defects policy or something more specific, you can get it.
The different types of insurance policies include:
- New build warranty
- Social housing warranty
- Commercial property warranty
- Self-build structural warranty
- Completed house warranty
- Barn conversion warranty
- Build-to-Rent structural warranty
Why you need a building warranty
The main reason to obtain a building warranty is to cover the costs of any structural defects that arise months or years after the construction of the property is completed.
There are more reasons, though.
For example, the majority of mortgage lenders will not sign off on a mortgage if a building does not have a structural warranty. This can cause a major delay in a house sale.
Plus, any property under 10 years old can be incredibly difficult to sell without a proper building warranty. Having a structural warranty on a property provides reassurances to lenders that the property is financially covered for any defects and reduces the risk of them losing money if problems are discovered at a later date.
So, it’s essential to obtain a building warranty on a residential or commercial property, whoever you are – an investor, developer, contractor or homeowner.
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