64 FINANCE & INSURANCE
be looking out for in a structural warranty provider?
Check the size of the organisation – do their inspectors and risk management surveyors have local knowledge to back up their technical expertise? Having local or regional representation can also make them more responsive.
How long have they been trading? Structural insurance is also a niche sector, making it more exposed to market vol- atility. A more established provider will have built relationships and processes to withstand this.
on running-in a new home, knowing the difference between snags and defects – and what to do should the worst occur – should be automatic.
Good providers offer their own dispute resolution service, and some insurance policies will provide alternative accom- modation if required, as well as covering professional fees. This all means both the homeowner and developer can enjoy peace of mind.
So, when you get planning permis- sion for your next development of new quality homes, what features should you
Check the rating of their insurer – A-rated insurers give you the greatest peace of mind. Larger providers will have a panel of insurers. Given the long dura- tion of the policy, it is important to know they are reliable, experienced and secure. What technical support and service can they provide beyond risk inspections? Remember that the warranty provider will be working alongside you so how can they support you, for example, with changing Building Regulations or adopting MMC? Look for insurance policies that meet the specifi c needs of your developments, as well as the ‘extras’ such as cover for mechanical and electrical inherent defects, contaminated land, debris removal, alter- native accommodation, and professional fees which are included as standard.
WHAT IS A STRUCTURAL WARRANTY AND HOW DOES IT WORK?
A structural warranty covers latent defects and is an insurance policy that ensures any major damage caused by structural defects in the design, workmanship or components of the building, are rectifi ed in the fi rst 10 years from completion. Generally, a structural warranty is split into two periods. The fi rst is the Defects Insurance Period (DIP) – typically this is the fi rst or second year of a policy in which the builder is responsible for fi xing any defects deemed to be a failure to comply with the warranty provider’s standards. The second is the Structural
Insurance Period (SIP) – generally eight years following the DIP – during which time the warranty provider is responsible for dealing directly with any claims. Providing the claim is valid, the provider should then organise any necessary repair work, or pay for such repairs.
Dean Stritch is UK sales director at LABC Warranty
WWW.HBDONLINE.CO.UK
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