Fallow Park, Staffordshire, by Jessup Choosing a warranty provider
Dean Stritch of LABC Warranty describes what to look for when choosing a warranty provider for residential and commercial projects
H
ow do you choose a warranty provider? With a range of options on the market, what is the difference, and how do you choose the cover that is right for your development? LABC Warranty provides the
following top tips on how to choose.
THE COVER Not all structural warranty policies provide the same level of cover. While some differences may be subtle, others can be more dramatic and
potentially leave you unprotected in certain situations. The level of excess or financial limits also vary from provider to provider. Obviously the best way to completely understand any insurance policy is to read it in full, but here are some useful questions that you might want to ask at the start to help narrow down your search: • What is the policy excess? • Is water ingress excluded from cover? • What is the financial limit for each house or unit? • Is there an overall policy limit? • Does the policy include a defects insurance period (more on this later)?
THE INSURER Most structural warranty companies provide insurance policies underwritten by insurers rather than underwriting the policy themselves. This means that any claims will be paid by the insurer backing the policy. Structural warranties are for a 10-year period. Given this length of time it is
even more important to ensure that the insurer you choose will continue to trade for the duration of the policy. This may seem straightforward, but how can you know whether an insurer is reliable and secure? One useful indicator is to ask who the insurer is behind the policy and request their financial rating. The stronger the rating, the more likely they are judged to be able to meet their financial obligations, including potential claims.
LEVEL OF EXPERIENCE When you are working with a builder or sub-contractor, do you choose to work with the company with a proven track record, or someone completely new to the industry? We‘re guessing you would go with the more experienced operator, so why
would your insurance provider be any different? Providing 10-year structural warranties means that it takes at least 10 years for a provider to have any customers that have been through the entire process. To be sure you are dealing with an experienced company you might want to ask the following: • How many years have they have been providing structural warranties? • Are they a member of the Consumer Code for Home Builders? • Are they accepted by mortgage lenders?
RISK MANAGEMENT & TECHNICAL SUPPORT When you are buying an insurance product, it is important to remember that the warranty provider will be working alongside you for the duration of the project. Therefore, you should find out exactly how they will operate on your
www.housingmmonline.co.uk | HMM October/November 2019 | 33
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52
