Learn more about what a structural warranty is and covers, which of our products you require and how it differs from other types of building insurance.
A structural warranty is an insurance policy designed to protect against defects in new buildings, normally for a period of 10 years after completion.
Whilst a structural warranty is purchased by the builder before construction starts, it actually protects the homeowner from structural damage that may occur during the first ten years after it has been completed.
The cover provided by a structural warranty varies greatly by provider but can include:
Should the developer become insolvent during the build this protects the homeowner’s deposit.
Leading providers of structural warranties include a defects period for the first two years of cover. This provides protection against non-compliance with the warranty provider’s technical manual and may include non-structural issues.
This makes up the main part of the warranty and covers against structural issues after the defects period expires.
If you are building or converting new homes it is recommended you purchase a structural warranty prior to construction, in addition to building regulation approval.
However, if you are building a conservatory or an extension you may not need a warranty but you will need to comply with building regulations to ensure the property is structurally sound.
Find out more about how to obtain building regulation approval for your project at www.labc.co.uk
The main reason you will need to invest in a structural warranty is to help you sell your property once it is completed. The vast majority of mortgage lenders and banks require a structural warranty to be in place before they will provide a mortgage on a property.
A structural warranty will also provide protection against defects in either workmanship or the risk of failure with construction materials helping minimise any problems arising whilst ensuring your reputation is protected.
Each of our policies have different levels, limits and sections of cover depending on the type and size of your build as outlined below:
We offer a comprehensive range of schemes for all your warranty requirements:
Designed to cover homes being built to sell AND accepted by all of the UK’s leading lenders to help you sell your new development more easily.
10 or 12 years’ cover on purpose built rental properties to provide protection and security for you, the developer or investor.
Ideal for build-to-rent schemes, Private Rental Select gives investors, owners and developers all the features of our Private Rental cover but with greater control.
10 or 12 years’ cover on new affordable housing or shared ownership homes, protecting you and your tenants.
An enhanced service which provides cover for large projects with a building of six storeys or more, or a reconstruction value of £22.5m plus. Check if your building/s qualify as a major project with our tall buildings graphic. (Link to tall building graphic)
To protect owners or developers of commercial sites from potentially costly defects.
For developments with a combination of new homes for sale, private rental and/or social housing we can combine different policies to cover the separate elements of the build ensuring comprehensive protection for the entire development.
Provides cover on completed properties which do not already have a warranty in place. For example where a self-builder’s circumstances have changed meaning they now need a warranty to sell their home.
Specifically designed for people building their dream home. As well as providing security and peace of mind the 10 year policy can be used to secure stage payments from lenders.
A structural warranty is not the same as standard home insurance which is typically made up of building and contents insurance. Buildings insurance is usually a minimum requirement of any mortgage agreement and provides cover for damage to the property including fixtures and fittings like the kitchen and bathrooms. Contents insurance on the other hand is optional but can usually be combined with your buildings insurance to provide cover for loss or damage to personal belongings such as your TV, sofas and other valuable items.
A structural warranty on the other hand will only protect you against major defects resulting in damage to the actual structure of the building not general wear and tear.
For more information please refer to the homeowner's handbook or homeowner section of our website.
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MD Insurance Services Ltd. is the scheme administrator for LABC Warranty and is authorised and regulated by the Financial Conduct Authority. Registered in England No: 3642459 | Website by Fuelius.
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