With new build projects, no matter how big or small, it is imperative to meet the standards required for safety and to ensure that, should anything go wrong, you and the new owner are covered against any physical or financial ramifications. This is where a structural warranty comes in.
So what is a structural warranty?
A structural warranty, also known as a building warranty or latent defects insurance, protects you from exactly that; any latent defects that may come to light in the years after the property is built. That is, damage caused by defects in the design, workmanship, materials, or components that are not apparent, developed or anticipated at the time of completion. The policy usually lasts ten years once the property is finished.
Try as one might to use only the best and most reliable materials and components, you can never truly guarantee their integrity- especially with natural products. As with everything, building and the plethora of skills involved can, at times, be subject to human error even with the best of intentions.
The warranty/insurance covers the holder for costs involved in repairing or rebuilding the property due to any of the above. Obviously, this cost could be considerable!
Why do I need latent defects insurance?
Well, aside from the potentially huge financial burden previously mentioned, there are several other benefits to having a building warranty.
It ensures that the property is built to all the necessary regulations and standards. This gives your buyer peace of mind that the relevant boxes are ticked, and the property is well built, safe and secure.
Most importantly perhaps, a building warranty is usually required to secure finance or mortgage funds. In the modern market, it is reasonably rare that people are able to buy their new house/property outright and therefore the additional help of a mortgage lender is required. As with any investment, the lender wants to know that their asset is protected and the chance of any losses nullified. A building warranty reassures the lender that should the house suffer problems that may reduce its value in any way, these will be rectified.
At Homeproof, we’ve built our reputation on integrity and trust: delivering a personal service, competitive quotes with no hidden costs, and helping our customers find the right protection for their residential and commercial building projects. Want to find out more or get a quote? Get in touch.