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Home Owners Warranty Insurance Guide

If you're looking to buy a new home that is either a new build or an existing property that is less than 10 years old, Home Owners Warranty Insurance is essential.

Home Owners Warranty Insurance, also referred to as Structural Insurance or 10 Years Latent Defects Insurance, protects against the high cost of repairs associated with structural repairs to a new building.

Due to the nature of new buildings, structural issues are often hidden and do not become apparent until the house has settled and been lived in for a while.  For this reason it is important to have cover in place for a reasonable period of time, with the standard currently set at 10 years from the date of completion of construction work (although extended warranties of 12 or 15 years and retrospective warranty insurance is also available).

It is important to consider that structural issues within new buildings are not limited to errors from the builders or poor methods of construction but can in fact be caused by a wide range of factors. Some of these include faulty materials, issues with land subsidence or contamination or faults in the architectural design.

For this reason Home Owners Warranty Insurance is much more preferential than an Architect's Certificate or the typical 2 years Builders Insurance you will get with a new property (in fact with CRL's cover, there is no reliance on the 2 year developer warranty period and instead we cover you from day one, ensuring less stress by giving you extra peace of mind).

Specialists in Structural Defects

Home Owner Warranty Insurance: Differences for Cash Buyers v's Mortgage Purchases

If you are buying a new home or a home that is less than 10 years old with the help of a mortgage loan from a lender such as Halifax or HSBC, it is highly unlikely you will be approved unless Structural Warranty is in place on the property.

Mortgage lenders inisit on this for a simple reason. Houses are worth significant sums of money, a structural fault will clearly affect that value and if you do not have the cash available to pay for the repairs or rebuilding work, your home will be worth less than the money you paid for it and potentially less than the sum the mortgage lender has lent to you.

With Home Owner Warranty Insurance in place the lender is assured that should an expensive structural fault arise in your home, the insurance will pay for the repairs and maintain the value of your property.

Cash buyers, without the need for a mortgage, could pay for a new build or house less than ten years old without having insurance in place. Those that do this however are taking a risk as a recent survey shows the average cost of a structural repair is £42,000, and all repair work would have to be paid from the owner's pocket without insurance in place to protect them.

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