Tips to choose the right building warranty provider for your projects
Due to the rapid changes in the latent defect insurance market it can be challenging to select the best new building warranty provider for your project. Here are some considerations to keep top of mind:
Level of cover
One point to note is that building warranty policies from different insurers may not provide the same level of cover. The differences here can be dramatic and leave individuals exposed or underinsured in worst-case scenarios. As such, it is crucial to assess the insurance policy in full. When you do this, consider the following:
- Overall policy limit
- Access to the lending market
- Financial limit for the property
- Any defect period
It is also essential to check that the limit of indemnity and the reinstatement cost complement one another as part of the policy.
Think about the insurer
A structural warranty cover extends over ten years. As a result, it is vital to check that the underwriter for an insurance company has a financial rating. Although this will not guarantee solvency, these ratings demonstrate evidence that a company is credit-worthy and a reputable business.
Check the warranty provider
It is important to understand who the warranty provider is and consider aspects such as:
- Technical standards
- Whether they employ their surveyors
- The technical support available
While insurers in the market require you to build in line with building regulation standards, some insurance providers also have technical handbooks that go above and beyond. We work with our clients to understand the project at hand and partner them with an insurer who will best complement their development.
Insurer experience levels
As with anything else, the experience of a company is an important consideration. The structural warranty industry is no exception here, and you should consider the following questions when determining if the company you are looking at possesses the right level of experience for you:
- Do all major mortgage lenders accept them?
- How long have they been in the structural warranty business?
- Insurers’ experience of working on similar-sized projects
When choosing your building warranty provider, consider the level of customer service they can offer. Will you be provided with a dedicated account manager who you can contact whenever you have a query? How long did they take to respond to your initial query? Answers to questions like this will provide a clear image of the level of support a company can deliver. The benefit of working with a new build warranty advisor is that with the right support, you can also benefit from a more hands-off approach to this part of the process.
Finding and obtaining the right building warranty can be both arduous and time-consuming. An independent advisor can take care of everything for you, and you will have peace of mind that the correct research level is completed without spending time on it yourself.
Value for money
Monetary values are not the only thing you need to look at, and it is essential to look at the value of the provider as a whole by looking at the above variables and coming to your conclusion. Of course, the monetary side of things is important to the insurer’s overall value, and you need to ensure that you are being looked after under a high-quality policy.
We hope this provides some clear factors to assess when selecting a new building warranty provider for projects going forward.