There is a great deal of confusion amongst self-builders concerning the concept of warranties- what are they and how you could benefit from one?
It’s essential to understand how to gain a structural warranty for your property before you embark on any development or construction project. With this guide, you can best the possible guidance for your specific need. Here are some things to know about getting a self-build warranty.
What is a Self-Build Warranty?
Building a custom home should be a dream come true, however, with every build comes elements of risk and disruption of your self-build.
The self-build structural warranty or latent defects insurance policy guarantees the structural integrity of your building against building defects that may occur during the build design or materials used in the construction process.
The warranty provides will check your plans, known as a technical audit, and carry out an inspection process at various stages of the build on completion, a 10-year warranty is provided for housebuilders to ensure that any defects discovered in each period during the agreement will be covered if they lie within the builder’s responsibility.
This reduces the number of inspectors on site, making it an efficient proposition. A structural warranty protects the future homeowner against risks that are not covered elsewhere and will be a requirement of most lenders.
What is the Typical Cost of a Self-Build Warranty?
Typically, the cost of a warranty is primarily based on the size of the new build, the frame construction type, and the build cost. The average price is between £1,000 and £4000. The average cost for a warranty Is £2,000. This covers the full premium for 10 years, which does include all technical site audit visits by a professional surveyor.
What does a Structural Warranty cover?
The policies are designed to cover latent defects in the design, workmanship, or materials that arise during construction, renovation, or conversion but are not discovered until after the completion of the structure of the building at the project address. When comparing a warranty with home insurance, the main obvious distinction is that home insurance will protect you against issues that are indifferent to the structure of your build.
A self-build warranty typically consists of two periods: the defects period and the structural insurance period.
The defects period, which starts when the building receives its certificate of completion, covers any issues that may arise during the first two years of the policy. During this time, the contractors are responsible for amending any defects.
The structural insurance period, which covers the 3rd to 10th year of the contract, is when the insurer is responsible for the cost of any structural defects. This usually includes load-bearing foundations, roof coverings, load-bearing walls, partitions, floors and staircases, roof framing systems, load-bearing lintels, and chimneys and flues.
Other benefits that could be included in a policyholder’s coverage include contaminated land remediation expenses incurred to comply with a statutory notice, expenses for repairs needed when there is a danger to the physical health and safety of occupants due to non-compliance with building regulations, and deposit protection, should contractors go out of business during the build, the self-builder deposit will be protected.
Who needs a Self-Build Structural Warranty?
While there is no legal requirement for self-builders to take out a 10-year warranty on their new homes, most lenders will require it to grant a loan. This is because the Council of Mortgage Lenders and other high-street lenders accept this type of coverage.
There are alternatives to taking out a self-build warranty, such as an architect’s certificate. This is a signed statement that confirms that the build has been supervised and constructed in line with building practices. It may be cheaper than a warranty, but it usually only covers six years and is not an underwritten insurance policy.
What are the benefits of a self-build Warranty?
One of the most obvious benefits is that a structural warranty gives you the peace of mind of knowing that you are covered in case something goes wrong, saving you time and money. The provider will also conduct regular inspections to ensure that the building meets all relevant building standards.
Also, as mentioned earlier, most mortgage lenders may ask not to lend money to self-builders without a self-build warranty, so having a policy in place, especially if you are looking to sell the built property in the future. Having a self-build policy is worth the investment.
Where can you get a self-build Warranty?
The ideal time to start thinking about getting a structural warranty is when the homebuilder is about the entail the project. The reasons for this; are to ensure that your building is acceptable to warranty providers, can factor the cost of the warranty into the project budget, and deciding to leave the decision of purchasing a warranty, could have a higher price, as the surveyors will not have had full visibility of the build process.
It is important to remember that a self-builder may think that the project may meet all the building regulations, and nothing may go wrong, unfortunately, that may not always be the case. Professionals like surveyors, architects, and builders can make mistakes, there can be faults with the building materials or issues with the land of the self-build that will be constructed on. A self-build warranty covers you against all these risks.
Here at Building Warranty, we specialize in all kinds of structural warranties, providing protection for homeowners to developers, we are the UK’s number-one choice for warranty solutions, professional advice, and personal service. If you would like more information about our self-build warranty and how it could protect your build, we can guide you with the right advice.
Give us a call at 0800 5200155 to speak to one of our professional team members, or email your inquiries to us at email@example.com, and one of our team members will get back to you as soon as we can.
Alternatively, you can complete a simple online form and one of our team specialists will process your quote immediately: https://buildwarranty.powerappsportals.com/ldi-application/