The landscape of the UK’s 10-year new build warranty market has seen significant changes in recent years. Some warranty providers have exited the market, leaving developers with limited choices, while others have faced challenges in securing new capacity facilities.
J3 Director, Johnny Leadsom explores the essential factors developers should consider when selecting the most appropriate new build warranty provider, taking into account recent developments in the market.
New Build 10 Year Warranty Providers
Before delving into the selection considerations, being aware of the A-rated warranty providers in the UK is essential. The most well-known are:
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National House-Building Council (NHBC):
The NHBC is the UK’s largest provider of new home warranties. According to its website, around 80% of newly-built homes have a 10-year NHBC warranty. It is also the UK’s largest single approved inspector for building regulations. The NHBC is a not-for-profit company which reinvests its profits into research and other activities to raise the standard of new homes.
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Local Authority Building Control Warranty (LABC):
Because LABC Warranty works in partnership with Local Authority Building Control it is probably the best known provider of building control and warranties throughout England and Wales. Underwritten by well–known names AXA and Aviva, they also have a wealth of additional accreditations like RIBA and HBF. LABC is also a founding member of the consumer code for homebuilders, has its own awards ceremonies, and is a partner in the new homes review, giving homebuilders an independent rating for customer satisfaction.
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Premier Guarantee:
Premier Guarantee has operated in the market for over 20 years and has its own team of risk management surveyors. They support clients with technical requirements and warranty standards. Premier Guarantee offers cover across a range of development types, including new homes, Build to Rent, social and affordable housing, commercial schemes and high-value projects. There are covers for commercial and high-value products (£25M+).
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BuildZone:
Build-Zone offers a wide range of structural warranty products and latent defects insurance for various projects and developments across the UK and the Republic of Ireland, including residential, commercial, mixed-use, permitted developments, and regeneration schemes. They maintain high standards, work directly with insurer partners, and are TSI-approved, giving customers confidence in the acceptance of their warranties by most UK lenders. Build-Zone Survey Services Ltd (BZSS), their in-house technical resource company, ensures technical audits and building control via approved inspectors, facilitating cost savings and efficient issue resolution for customers’ projects.
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ICW:
ICW (International Construction Warranties) is a leading provider of construction warranties in the UK, certified by the Chartered Trading Standards Institute. ICW’s structural warranties cover projects with values up to £50 million and are accepted by 97% of mortgage lenders. Cover is divided into two key periods. During the first two years, the builder or developer is responsible for defects. Structural defects are then covered under the policy for the remainder of the warranty period, subject to the policy terms and minimum claim value..
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Protek:
Protek is another well-established structural warranty insurance provider, recognized by lenders, making it easier for developers to sell new homes. They provide 10 and 12-year structural warranty insurance backed by A-rated insurers. Its warranties are designed for a range of development types and are accepted by UK mortgage lenders.
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Thomas Miller Specialty Construction:
Thomas Miller Specialty Construction (TMSC) was established in 2021 and provides latent defects insurance for larger commercial and mixed-use developments. Its product is backed by Aviva and distributed through its broker network.
TMSC also provides technical auditing through its risk solutions business. Its specialist product is aimed at developments exceeding £10 million in contract value.
To get an instant indication of the cost of a new build warranty, use the J3 warranty cost calculator.
Top 3 Considerations When Comparing New Build Warranty Providers
Limit of Indemnity:
As new capacity becomes harder to secure, many providers have limited their indemnity per structure to £25 million. Developers should ensure that the reinstatement cost and the policy’s indemnity limit are aligned, as underinsuring can be a costly mistake.
Competent and Compliant Technical Services:
Developers should assess the insurer’s technical process and on-site requirements. Partnering with an insurer that aligns with the specific project’s needs is crucial.
Demonstrable Experience:
Developers should consider a provider’s experience and appetite for comparable projects. A provider that regularly underwrites similar schemes may be better suited to the development’s risk profile and technical requirements. References from comparable projects can also provide useful insight.