FINANCE SERVICES
DOES MY SELF-BUILD HOME NEED A STRUCTURAL WARRANTY ?
With price increases impacting every aspect of the construction process , self-builders will be looking for ways to manage costs . Hidden defects in newly built properties can happen to the most prepared self-builder , so protecting the project with a structural warranty can help with costly , unforeseen structural problems .
WHAT IS A STRUCTURAL WARRANTY ?
Self-build homes can experience a range of design , build , or material problems , sometimes years after the house was built . A structural warranty is designed to cover the cost of fixing these problems .
Structural warranties are designed to cover the cost of repairing hidden defects that are often expensive and generally excluded from home insurance policies . A structural warranty typically covers the cost of repairing or reinstating newly built properties or new works to existing buildings because of a design defect , faulty workmanship , or materials .
ARE STRUCTURAL WARRANTIES A LEGAL REQUIREMENT ?
There ' s no legal requirement to have a structural warranty after completion , but homeowners may find that lenders will require a guarantee for up to ten years ( even if they aren ' t financing the build ). A structural warranty may also be needed if the homeowner decides to sell their property in the first ten years to anyone using a lender . Architect certificates and professional practitioner ' s certificates ( PCC ), don ' t generally cover structural defects , leaving the owner to pick up the cost of any structural problems .
WHAT DOES A STRUCTURAL WARRANTY COVER ?
Structural warranties are designed to cover the cost of fixing damage to a property which can include professional fees , the threat of imminent collapse , ingress of water ( excluded for the first 12 months ), subsidence , landslip , or heave . Other things typically covered include the removal of debris , dismantling , demolishing , shoring up of the property , temporary removal of contents , and resultant damage to non-structural elements .
WHAT ' S THE BEST TIME TO ORGANISE A STRUCTURAL WARRANTY ?
Homeowners can organise structural warranties before construction starts to enable the insurer to assess the build throughout the construction period . Cover can be arranged after construction starts , but the insurer may apply cover exclusions and increase the cost of the premium if the selfbuild is already underway .
Insurers may charge a technical audit fee and a small deposit premium , taking the balance of the premium at completion . The premium rate pre-agreed at the start of construction is generally applied to the reinstatement value of the property at practical completion to generate the final premium payable .
To get a quote , call us on 0800 230 0225 or visit www . selfbuild . uk . com
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