A building warranty is a comprehensive insurance policy that is provided by a developer to the owner/buyer. It offers peace of mind that the building has been constructed to a standard set by the warranty provider.
Most providers of building warranties offer policies for:
- Residential buildings
- Affordable housing developments
- Commercial premises
Buyers of the buildings within new developments will look for the reassurance of a warranty. Particularly in the case of a new build home; It is a condition of most mortgage applications that a structural warranty is in place for newly built or converted properties and it can be difficult to sell the building further without a warranty, if it is less than ten years old.
Each company’s policy will vary depend on the warranty and building application type but generally a warranty will cover as standard; structural damage, defects to walls, roofs and foundations, in line with the policy details.
A warranty for a residential building will typically last for ten years with differing levels of protection in the earlier years of the policy.
Commercial property warranties tend to have a slightly longer cover and most are transferrable to future owners.