It is not compulsory to have a Structural Insurance policy but most mortgage lenders require one and you may have trouble trying to sell on a residential property less than 10 years old without a Structural Insurance policy in place to new buyers. A Structural Insurance policy is a valuable sales feature and gives potential buyers the peace of mind that the property has been built by a builder/developer that meets our technical standards of construction and quality of workmanship and that the property has passed our rigorous key stage Site Inspections during construction.
Some people choose to obtain an Architect’s Certificate instead of a Structural Insurance policy but an Architect’s Certificate only certifies that the work has been properly designed and carried out correctly. But if there is a defect, the builder would have to sue the architect and prove negligence which is an expensive and lengthy process. Evidence of a structural defect is proof enough to claim and be covered by a Structural Insurance policy.
Furthermore, an Architect’s Certificate (or Professional Consultants Certificate [PCC]) is only valid for 6 years, compared to a Structural Insurance which provides defects liability cover for up to 10 years from the completion of construction.