When embarking on a new construction project it’s crucial to purchase a new build warranty to protect your investment. A new build guarantee offers coverage for 10 years from the sign-off of building regulations, safeguarding you against major structural defects. Moreover, a new build house warranty is mandatory for mortgage lenders and serves as an essential requirement when selling the property at a later date.
At LatentDefects, we understand the significance of a >new construction warranty, and our team of experts has over decades of experience in the construction industry. Read on to find out how we can assist you in obtaining a >new build guarantee.
A >new build house warranty, also referred to as >Latent Defect insurance, is an insurance policy that covers newly built or converted properties for ten years from building regulation sign-off. The warranty is obtained by builders or developers before the start of construction and is in place before the property is sold to a buyer. The first two years, known as the ‘defects period,’ are the responsibility of the developer in the event of a claim. The remaining eight years are the responsibility of the insurer.
The warranty provides coverage for structural defects, such as defective windows or the gable end moving away from the roof trusses. During the first two years of the warranty, the developer is responsible for any claims, whereas the remaining eight years are covered by the warranty provider, also known as the structural insurance period.
The warranty includes a structural guarantee of 10-12 years from building regulation certification, a one-off payment that covers all survey and insurance costs, and an excess per claim per residence for residential units. In the event of a claim, the insurance covers the cost of a partial or whole reconstruction, including demolition and professional costs. The policy is fully assignable to any future purchaser and is recognized and accepted by mortgage lenders, high-street banks, and UK Finance. Additionally, the policy is FCA regulated and provides peace of mind, allowing you to sell or re-mortgage your property without worry.
