J3 Advisory Structural Warranty
New Build Warranties
A new build warranty is a 10 or 12 year insurance policy that protects against structural defects in newly constructed residential developments and is now a standard requirement for UK funders and mortgage lenders.
With experience in advising and arranging new build warranties across the residential spectrum, J3 guides their clients through the process with concise, accurate and timely advice on all options available to them.
With more warranty providers active across the UK, developers are often presented with proposals that vary in underwriting strength, lender acceptance and technical approach, making early, informed selection essential to avoid delays at funding or sale.
The cost of a new build warranty is shaped by a small number of core underwriting considerations: the experience and claims history of the professional team, the developer’s financial standing, the stage of works at the point of enquiry, and the size, construction method and location of the scheme. Securing terms before work begins remains the most effective approach, opening access to stronger insurers, reducing technical friction and helping pricing more accurately reflect the project’s risk profile.
With these factors setting the parameters, selecting a provider becomes less about chasing the lowest premium and more about assessing the quality and resilience of the cover. Developers should check that the limit of indemnity matches the reinstatement cost, confirm that the insurer carries A-rated capacity recognised by major lenders, and take confidence from the provider’s appetite and experience with similar schemes. Approaching the 10 new build warranty provider selection in this way helps avoid on-site technical complications and supports the saleability of units.
Once full enquiry details and supporting documents are provided, developers can typically expect around four weeks from submission to the initial inspection, with larger or more complex schemes requiring a longer lead time. For an early indication of premium for your next development, our online new build warranty cost calculator offers a useful starting point before formal terms are sourced.
New Build Warranties from J3 Advisory
At J3, we don’t always go to every corner of the market – our experience, relationship, and networks ensure we have access to the right ones, ultimately saving our clients time and money.
When your next project does come into focus, we would be happy to talk through the scheme and offer our pragmatic and advice without confliction on the new build warranty insurance policy for you.
For developments containing a combination of homes for sale, private rental, social housing and commercial, it’s vital to seek trusted and impartial warranty advice. At J3 Advisory, we cover this under our Mixed Use Scheme.
Projects with a contract value above £25m, professionals will benefit from our Major Projects Scheme.
Why use J3 Advisory?
Here are just a few of the reasons why you should consider J3 Advisory for arranging new build warranties and insurance on your next project:
We only work with ‘A’ rated, UK based insurers for structural warranties and latent defects insurance. Given that the period of cover for a structural warranty is ten or twelve years, it’s essential to ensure that the insurer’s underwriter holds a financial rating from one of the UK’s ratings agencies. While no one can completely guarantee the solvency of any entity, these ratings provide a robust evaluation of a company’s creditworthiness and give assurance that the insurer is reputable and likely to remain operational throughout the duration of the policy should it need to be called upon.
The structural warranty and latent defects insurance cover we arrange is accepted by leading banks and building societies, which means buyers can obtain a mortgage to purchase a home from you.
A Tailored Service for Developers
At J3 Advisory, we understand the market and recognise that no two developments are the same. That’s why we go beyond simply arranging structural warranties and latent defects insurance. We carefully identify the right insurers for your specific needs, handle all aspects of policy arrangement, and manage queries on your behalf to ensure a smooth process. Our dedicated after-sales service means we continue to support you after the policy is in place, proactively addressing any issues and ensuring everything stays on track, so you can focus on delivering your development with confidence.
New build warranty FAQs
What is a new build warranty?
A new build warranty, also known as a structural warranty is an insurance policy that covers certain defects and issues in newly constructed properties. It typically covers structural defects and may also include other components like roofs and windows. For a comprehensive overview, visit our structural warranties page
Who provides new build warranties?
Every warranty provider offering new build warranties is required to commit to a consumer code. This code safeguards consumers throughout the sales process and provides a mechanism for resolving disputes in case of any complications. Some providers operate within Consumer Code for Home Builders. However, since October 2022, prominent developers have opted to enroll their projects in the New Homes Quality Code, an alternative program.
What does a new build warranty cover?
New build warranties generally cover structural defects that occur within a specific time frame after construction (Generally 10 or 12 years). This may include issues like foundation problems, load-bearing walls, and other major structural elements.
Can the warranty be transferred to a new owner if the property is sold?
New build warranties are transferable to subsequent owners, which can add value to the property when it is sold.
What is excluded from a new build warranty?
Exclusions can vary, but common items not covered by new build warranties may include general wear and tear, cosmetic issues, and issues caused by homeowner negligence.
Is there a deductible for warranty claims?
Some warranties may have a deductible, which is the amount the homeowner is responsible for before the warranty provider covers the rest of the costs.
What happens if the developer or contractor goes out of business?
Your new-build warranty will remain unaffected even if your developer or contractor goes bust. However, in the event that the insurer responsible for your warranty faces insolvency, another insurer may need to step in. It’s important to note that you may be responsible for the cost of obtaining the new coverage.
Click here to read our checklist when selecting the new build warranty provider.
Do new build warranties impact a mortgage application?
A new build warranty is essential to the mortgage process, and lenders will require a policy is in place for properties that are up to 10 years old. For older properties, lenders will usually ask to see evidence of a warranty even if it’s expired.