A self-build warranty is first party insurance that provides protection to individuals who are constructing their own homes or managing a self-build project.
This warranty offers coverage against structural defects and ensures that the completed self-build project complies with building regulation standards. It is designed to give self-builders peace of mind and financial protection in case any issues arise after the construction is completed.
In most cases, it is a requirement of the policy for the self-builder to live in the property for 12 months after practical completion before selling – Otherwise they may incur additional premium costs, should they wish to sell before that point in time.
Additionally, should there be a need to refinance or sell the property during the 10-year period after practical completion, the self-build warranty will offer the bank/lenders involved sufficient comfort to deploy funds.
While a Professional Consultants Certificate is often seen as a popular alternative to a self-build warranty, there are a number of considerations to be taken into account before opting for a non-insurance-based solution that may not actually protect self-builders should insurance be called upon.
In addition to self build warranties, J3 Advisory can also supports property professionals looking to place new build warranties, conversion warranties, commercial latent defects insurance, retrospective warranties and social housing warranties.
The benefits of our Self-Build Warranty include:
- 10-year building warranty cover from practical completion
- First party insurance
- Two-year defect period
- UK Finance approval which is recognised and accepted by mortgage lenders
Self-Build Warranty Insurance FAQs
Protecting your home from the eye watering costs associated with structural failure should not be overlooked. The financial implications and stress associated with repairing such damage can be overwhelming- this is the significance of having self-build warranty cover comes into play. It provides essential protection and offers peace of mind, ensuring that any necessary repairs are covered, sparing you from the burden of these unexpected expenses.
A self-build warranty is a 10 year insurance policy specifically designed for individuals undertaking self-build or custom-build projects to protect against any substantial defects that might occur post-construction in homes built or renovations.
It’s worth noting that this type of building warranty isn’t just another form of building insurance; they are distinctly different.
While buildings insurance covers events like spilling red wine on the carpet, structural warranties come into play for more intricate issues, such as latent defects within load-bearing parts of the building, which aren’t immediately apparent following completion.
A self-build warranty provides three primary benefits: financial security, peace of mind, and making future sales easier.
Without a self build warranty, the responsibility for financing rectification work falls solely on the homeowner’s shoulders. A structural warranty provides cover against design deficiencies and faulty installation.
Peace of Mind
Beyond monetary matters, the self build warranty gives the beneficiary of the policy peace of mind that should there be any structural issues that arise after practical completion, they have first party insurance in place.
Selling in the Future
While not legally mandated, a structural warranty is widely regarded as an essential requirement for purchasing a new build property built in the last 10 years. By having a structural warranty in place, homeowners and potential buyers gain peace of mind, knowing that any issues will be addressed, bolstering the property’s marketability and protecting its long-term value.
For individuals embarking on a self-build project with the intention of residing in the finished property, obtaining self-build structural warranty cover is essential. This specialised insurance provides essential protection against potential structural issues that may arise during or after construction.
If you possess a plot of land but have yet to commence construction, securing a Structural Warranty is highly recommended. Lenders often require this warranty as a prerequisite for project funding, ensuring the protection of their investment and mitigating potential risks associated with structural defects.
By proactively acquiring Self-Build structural cover or a structural warranty, you not only instil confidence in lenders but also provides you with the necessary peace of mind throughout the self-build journey.
A self-build warranty offers comprehensive coverage for the costs of a complete or partial rebuilding and rectification due to structural defects. While some defects may not be immediately evident upon practical completion, they can emerge years later. The insurers will indemnify the policyholder against claims discovered and notified to the underwriter during the period of insurance in respect of:
- Complete or partial rebuilding or rectifying work for the unit affected by significant damage caused by defects in design, workmanship, or materials. The insurers’ liability is limited to the reasonable cost of rebuilding each housing unit according to its original specifications.
- Rectifying any defect in the newly constructed drainage system related to the housing unit, for which the policyholder bears responsibility.
- Repairing, replacing, or rectifying any part of the waterproof envelope within the housing unit due to water ingress resulting from defects in design, workmanship, materials, or components of the waterproofing elements. The insurers will cover the reasonable and essential costs incurred for these necessary repairs.
With this comprehensive coverage, the policyholder can rest assured knowing that the insurers will provide financial support for addressing these specific issues related to the housing unit.
Typically, many mortgage lenders require a 10-year structural warranty before agreeing to finance any custom or self-build project. This requirement safeguards their financial interests by ensuring that potential costs related to construction defects will be covered.
Furthermore, it offers them security if anything goes wrong after the construction phase.
Here’s the step-by-step process to help you secure your structural warranty:
- Contact J3 Advisory: Contact us & we will guide you through the process step by step/
- Plan submission and quote: Submit your plans and receive a detailed quote for the policy. This quote will outline the coverage and associated costs tailored to your specific project.
- Quote acceptance: We will discuss the quotes received for the project and once satisfied, accept the quote to proceed.
- Receive policy and contractual documents: Upon acceptance & receipt of payment, you will receive the policy along with essential contractual documents.
- Build initiation and site inspections: With the policy in place, the construction phase commences. Throughout designated stages, site inspections will be requested by the provider to assess progress and compliance with standards.
- Build completion and final inspection: As the build nears completion, a final inspection is conducted. This thorough assessment ensures that all aspects of the construction meet the required standards and specifications.
- Warranty coverage begins: Once all stage certificates and a completion certificate have been issued, the comprehensive warranty coverage comes into effect. This marks the start of your safeguarding journey for your self-built home.