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Building Warranty: Everything you need to know

What is a building warranty?

A building warranty is an insurance product that offers cover for the structural parts of a new building. Typically, a building warranty can be offered on new build developments, self builds, social housing and new commercial buildings.

A building warranty covers aspects such as:

  • Cover for the complete or partial rebuilding or rectifying of any defect in the structural design of the new home
  • Cover for repairing, replacing or rectifying any part of the waterproof envelope
  • Cover for the cost of making good any defects in the chimneys or flues

One of the benefits of building warranty cover from a company such as CRL rather than relying on a developer or architect certificate is that it is provided on a first-party material damage basis therefore no requirement to prove fault or negligence. This means reduced stress and your claim can be settled much more quickly.

Who is a building warranty for?

A building warranty is for a range of companies, councils and social organisations, developers and individuals who are involved in the construction of new homes.

A building warranty may also be needed by a new home owner in order to get a mortgage. Under the Council of Mortgage Lenders (CML) regulations, all new builds have to have a warranty, and you can't get a mortgage without it. All Banks and mortgage lenders are governed by this regulation.

CRL also offer retrospective cover meaning that if you own a home that was built recently without the benefit of a warranty you can apply for one retrospectively and give yourself protection should anything go wrong.

Why does a building warranty last for ten years?

A building warranty generally lasts for 10 years from the date of legal completion, although in some cases a 12 year or 15 year warranty may be available.

The reason a warranty lasts for this reasonably long period of time is down to the nature of structural faults. If any errors are made in construction or if there are faults with the materials used they can often be hidden behind the finish of the new home and do not become apparent for some time afterwards. By using a policy of ten years it gives homeowners a reasonable chance to detect any faults in their home and claim for repairs using the warranty.

Is a building warranty transferable if I sell my home within the warranty period?

Yes. A building warranty is transferable so when you sell your home within the ten year warranty period, it will pass over to cover the new home owner against any defects in the design or construction that may appear. This is a great selling tool when marketing your property as it gives reassurance and many buyers will be wary of buying a home that is less than ten years old without a warranty in place.

Why Choose CRL Building Warranty?

There are many great reasons to choose CRL as your building warranty partner. Here are just a few:

  • Competitive premiums.
  • Dedicated account management.
  • Flexible underwriting approach.
  • Free technical support.
  • Cover effective for 10 years from the date of completion.
  • Provides a major benefit as a marketing tool when negotiating a sale or letting.
  • Delivers peace of mind developers, future purchasers and tenants.

For more information visit our building defects insurance page. Alternatively get in touch with the CRL team today for a building warranty quotation.

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