Building warranties

What is a building warranty?

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
  • Custom-builds
  • 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.

What’s covered?

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.

Find out more about types of building warranties from LABC.