J3 Advisory Structural Warranty

New Build Warranty

New Build Warranty Provider

There has been a significant increase in the number of new build warranty providers in the market. As a result, property professionals are now being inundated with various proposals from providers offering their services.

With experience in advising and arranging policies across the residential spectrum, J3 guides their clients through the process with concise, accurate and timely advice on all options available to them.

Since our launch in 2021, we have placed new build warranties on a number of projects – the more notable cases include a £17m residential scheme in East London & structural warranties on £26m worth of developments across Skillcrown & Epicho Homes.

What factors impact the cost of a new build warranty?

There are five main elements that affect the cost of your warranty:

  • Professional teams experience: Demonstration that the developer, contractor and sub-contractors have carried out similar sized projects and has a clean claims history.
  • The stage of the works:  Developers will always find it most cost effective by arranging the warranty before the works commence.
  • Developers financial standing: The stronger a developers financial footprint the more favourable terms an underwriter will offer.
  • The size, cost and location of your development
  • A developers rating with other insurance providers (if available)

What are the key considerations when selecting a new build warranty provider?

Some of the key considerations that developers need to be aware of:

  • Limit of indemnity: Developers should always confirm in writing that the reinstatement cost and the limit of indemnity on the policy mirror one another.
  • Access to the lending market: Insurers who don’t have A-rated carriers often have more restrictive lender acceptance lists that can become detrimental to sales.
  • A-rated capacity: Check that the insurers’ underwriter has a financial rating from one of the UK’s ratings agencies. While nobody can completely guarantee the solvency of any entity, these ratings evaluate and assess a company’s creditworthiness and offer comfort to their network that they are a reputable business on sound financial footing.
  • Demonstrable experience: Property professionals and developers should understand the insurers’ appetite and experience of similar sized schemes

How long will it take to get a new build warranty in place?

Once we have full enquiry details, alongside supporting documents, it is fair to assume a four-week time period from submission to boots on the ground for an inspection. On larger schemes (in excess of £25m), we always advise clients to allow a 6 week lead time.

How much does a building warranty cost?

To find out how much your new build warranty is likely to cost for your next scheme, use our online building warranty cost calculator.

New Build Warranty Insurance

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 unconflicted advice on the right 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.

The benefits of our New Build Warranty:

  • First party insurance
  • Flexible defect periods for 0-2 years
  • 10-to-12 year new building warranty cover from practical completion
  • UK Finance approved, recognised and accepted by mortgage lenders

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, windows, and plumbing. For a comprehensive overview, visit our structural warranties  page

Who provides new build warranties?

The most renowned providers of new build warranties are the National House-Building Council (NHBC), Local Authority Building Control Warranty (LABC), Premier Guarantee, Build-Zone & ICW.

Every warranty provider offering new build warranties is obliged 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.

Adding to consumer complexity, various other warranty providers implement their own consumer codes. Build-Zone, for instance, strictly adheres to the Code of Conduct for Home Builders.

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?

New build warranties can impact your mortgage application. In the UK, most lenders mandate a structural warranty for new build properties, converted properties, or residential properties less than 10 years old.

Other Residential Building Warranty Solutions

New Build Warranty

Conversion Warranty

Latent Defects

Retrospective Warranty

Social Housing Warranty

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