Hybrid Building Warranties

A new service from Buildsafe  saving you considerable costs when taking out building warranties.

This new service is for property developers who are building residential units that are going to be rented instead of sold at completion. Usually you have to pay the insurance provider for membership, technical audits, insurance premium and Insurance Premium Tax (IPT) upon inception.

Building Warranties- A Necessary Evil?

Building warranties are insurance policies that provide the residential home or commercial building with a 10 year structural latent defects guarantee in the event of building damage or failure due to build & design inefficiencies.

Commercial Latent Defect Insurance

It is often the case that building works defects may not become evident until after completion of the project and then well after completion of the defects liability period. These faults are known as latent defects. Latent defect insurance provides cover for damage as a result of defective design, workmanship or materials, not discovered before practical completion. The policy period is usually 10 years and can be extended to include; Loss of Rent, Component cover and Mechanical & Engineering damage.

I thought it was worth explaining the different policies in this sector, there are three key areas of insurance for any of your clients who are going to appoint a contractor to carry out major works on their home (or for that matter build them a new one).

1. Latent Defect Insurance (Structural Warranty)
2. Non Negligent JCT 21.2.1 Insurance
3. Renovation/ home works Insurance

These three policies all cover different parts of the build process but all are just as important as each other.