Residential property developers can be forgiven for treating the arrangements for their structural warranties with a degree of apathy.
We often hear comments resembling, `We know we need the policy to satisfy the various lenders involved – What information do I need to provide to get a quote, how long will it take, and what can we do to keep the price as low as possible?
Now, before we discuss the principles that shape our way of working, we would like to acknowledge the increasing frustration felt by property professionals about the increase in the cost of insurance premiums. To address and, where possible, mitigate this, we often recommend to our clients to keep the following points in mind:
- It’s all about the timing:
The most significant impact anyone in charge or looking to take care of the structural warranties for their business could make is improving their timing and not leaving it to the last minute to get their advisor involved. With enough time, your advisor can paint a picture to the insurer about the proposed development being insured, the developers’ background, and the professional team to be employed. These elements make up the fundamentals of securing appropriate insurance when it comes to coverage and pricing.
Well-presented enquiries that detail complete information are always well received by underwriters. Too often, the backlog of cases insurers battle with comes as a result of incomplete enquiries that require endless back and forth. Advisors that collect all of the required information before approaching an insurer are often better received than those that don’t!
- One Size doesn’t fit all.
For businesses seeking help with their structural warranties, resist the ‘one-size-fits-all’ approach. No two developments are the same, and most developers have a varied portfolio of schemes regarding the number of units and the type of build (new build/conversions). With that in mind, when it comes to structural warranties, it’s important to consider that insurers have varying appetites for different types and sizes of projects. When exploring the market on your own, it’s essential to understand the insurers’ project preferences, experience with similar schemes, and their technical hand manual requirement.
It’s also not uncommon for your long-standing warranty brokers to become complacent along the way: The more long-standing your relationship, the more common it is to see the same two providers on every scheme you arrange a warranty. Having market insight around capacity and business levels is vital to ensure you always obtain the right policy, from the right provider, at the right price.
Our advisory ethos:
We believe in partnering our clients with the right A-rated insurers for their projects. Having a network with direct access to all of the A-rated insurers is essential, but knowing which provider is right for each developer and subsequent development results in ultimate peace of mind, time redemption, and money saved for our clients.
The team at J3 is committed to a straightforward, transparent way of communicating. This way of working enables us to yield the best possible results for our clients in pre-eminent timescales.
If you have a project you wish to discuss, fill in our enquiry form online or call us on +44 203 096 0718
