Structural Warranty Glossary

Building Control

The function of checking that building work has been carried out in accordance with the Building Regulations (England and Wales), Building Standards (Scotland) and associated legislation.

Building Period

The period commencing on the date specified in the Initial Certificate issued for the Unit on behalf of the Insurer and ending upon the date the Certificate of Approval is issued for the Unit at the New Development.

Building Regulations

Building regulations are a set of national standards and requirements that govern the design, construction, and alteration of buildings. They are put in place to ensure the health, safety, welfare, and convenience of people in and around buildings, as well as to conserve fuel and power, and to provide access for people with disabilities.

Compliance with building regulations is mandatory for all construction projects in the UK. They are enforced by local authorities or private approved inspectors. Failure to comply can result in penalties, and buildings that do not meet the required standards may be deemed unsafe for occupation.

Building Standards (Scotland)

Building Standards in Scotland refer to the set of regulations and requirements that govern the construction and alteration of buildings within Scotland. These standards are put in place to ensure the safety, accessibility, energy efficiency, and overall quality of buildings. The system is administered by the Scottish government.

Building Warranty

A Building Warranty is also known as a structural warranty, new build warranty, or new homes warranty.

Certificate of Approval

The certificate issued by the Surveyor following satisfactory completion of a new home.

Certificate of Practical Completion

The certificate of practical completion is not the same as a building warranty. The purpose of the Certificate is simply to state that the building has been completed in accordance with the designs. The Certificate issued by the Inspector following the completion of the Building Control function for a Unit / units at the New Development.

Chimneys and Flues

Forms part of the Structure of the New Residential Housing Unit where cover is provided under Section 3: Structural Indemnity for the reasonable costs of repairing or making good any Defect(s) in the chimneys and flues of the New Residential Housing Unit which were newly constructed by the Developer and which is/are likely to cause imminent danger to the health and safety of the occupants.

Common Parts

Parts of a building wherein the insured is responsible for contributing to the cost and maintenance of specific sections as mandated by legal obligations.

Compliance with building regulations is mandatory for all construction projects in the UK. They are enforced by local authorities or private approved inspectors. Failure to comply can result in penalties, and buildings that do not meet the required standards may be deemed unsafe for occupation.

Contaminated Land

Cover is afforded for Contaminated Land under Section 4 for a New Residential Housing Unit and Section 2 for a Commercial Property. Cover is provided for any Remediation Expenses in accordance with any Statutory Notice issued against the Property and/or the Insured.

Continuous Structure

A single building or structure containing more than one unit of housing (such as blocks of flats or terraces) which does not rely on any other building or structure to sustain and transmit combined loads safely to the ground.

Contract

The contract or agreement between the Developer and the Purchaser in respect of the purchase, construction, conversion, refurbishment and / or renovation of the Unit(s) at the New Development.

Defect

Any fault, flaw, or imperfection in the design, workmanship, or materials used in the construction of a new building.

Defects Liability Period (DLP)

The period following completion or handover during which the contractor remains liable for defects in the works. The first 12 or 24 months of the DLP may carry additional obligations.

For Common Parts, the period commencing on the earliest date specified for the commencement of the Defects Insurance Period on a Certificate of Insurance issued for a Unit that shares the Common Parts and ending either 3 years from such date, or 2 years from the latest date specified for the commencement of the Defects Insurance Period on a Certificate of Insurance for a Unit sharing the Common Parts, whichever is the earlier.

For all other purposes, the period commencing on the date specified in the Certificate of Insurance and ending two years after such date. The Defects Insurance Period may differ from the period shown above and if this is the case it will be detailed in the Certificate of Insurance. It is important that the Certificate of Insurance is read in conjunction with the Policy.

Deposit

The amount paid to the builder as part payment for the purchase price of the development.

Developer

Any person, sole trader, partnership, company or other organisation who or which has registered the New Development, and with whom the Purchaser enters into an agreement to purchase the Unit on either a Freehold or Leasehold basis.

Development

An area that is covered by a single detailed planning permission or a series of permissions relating to continuous development by the developer.

Endorsement

A change to the standard terms of the policy, as shown on the policy schedule.

External car parking and roads

Any external area including associated drainage used for the parking of vehicles or external roadway or external path within the Property.

External envelope

The basement, ground floors, external walls, roofs, skylights, windows and doors of a housing Unit.

Final certificate of insurance

The Certificate issued by the Insurer indicating its agreement to the provision of the insurance cover for the development as set out in the Policy.

Initial Certificate

The Certificate issued by the Insurer signifying its agreement to the provision of the insurance cover for the New Development as set out in the Policy, subject to receipt of a Certificate of Approval and a Final Certificate (if required) for each Unit, and satisfaction of all Policy conditions.

Inspector

Any person, sole trader, partnership, company or other organisation authorised by the Construction Industry Council who or which carries out Building Control for the New Development.

Land

The area that is covered by a single detailed planning consent, or a series of consents, relating to continuous development by the Developer, including the ground that surrounds and supports the Unit and which was:

a) purchased by the initial Purchaser with the Unit at the same time as the Contract was entered into or completed; and / or
b) owned by the initial Insured when a Contract was entered into.

Latent Defect

A defect that is not immediately apparent and may become evident after a certain period of time.

Latent Defects Insurance

Latent defects insurance protects a completed project against inherent defects in design, workmanship, or materials that become apparent in the structure or waterproofing of a building. This is first-party insurance and eliminates the need for a protracted and potentially costly process of determining who is responsible for the defect and pursuing legal action, as insurers will initially handle claims under the policy.

Lead Insurer

The lead insurer is the principal underwriter determining the risks’ terms, conditions and premiums. In some cases, other participating insurers ( also known as follow insurers) may be bound to follow the lead insurer’s decisions on altering cover, premiums or claims.

Limits of Indemnity

This refers to the maximum amount the insurer is willing to pay under the policy. Limits of indemnity are most often expressed in the following ways: “each and every loss” meaning the limit is available for each claim, or “in the aggregate” which means that the policy has a finite limit.

Load-Bearing Floors

The structural parts of the floors in the main structure, but not including the floor coverings (such as floor tiles) and their fixings (for example, grout and adhesive).

Loss of Rent

Loss of Rent cover is available as a Consequential Loss Extension under the Commercial Policy wording.

Management Company

The person(s) (in the context of a multi-occupied building) having contractual responsibility for the repair and maintenance of the Structure and / or the Common Parts under any applicable agreement.

New development

A New Residential Housing Unit or group of New Residential Housing Units located at the site noted on the Development Initial Certificate / New Residential Housing Unit Initial Certificate for the New Development and for which an individual Certificate of Insurance is issued for each New Residential Housing Unit.

New Development shall be deemed not to include any building works other than the New Residential Housing Unit(s) detailed in the Development Initial Certificate / New Residential Housing Unit Initial Certificate.

Practical Completion

The point at which a construction project is complete.

Remediation Expenses

Reasonable expenses incurred for the investigation, isolation, removal or treatment of contamination to the extent required by any Statutory Notice.

Removal of Debris

All reasonable costs and expenses incurred by the Insured in respect of removal of debris and / or dismantling of demolishing and / or shoring up of the development.

Statutory Notice

A notice served on the Insured by a Statutory Authority, under the provisions of legislation that requires the Insured to carry out remediation of contamination.

Structural Defect

A defect that affects the integrity or stability of the building, making it unsafe or unsuitable for habitation.

Structural Engineer

A professional person employed for the design and planning of the structure and to ensure they are built to be strong enough and stable enough to resist all appropriate structural loads.

Structural Insurance Period

For Common Parts, the period commencing on the earliest date specified on a Certificate of Insurance issued for a Unit that shares the Common Parts and ending either 9 years from such date, or 8 years from the latest date specified on a Certificate of Insurance for a Unit sharing the Common Parts, whichever is the earlier.

For all other purposes, the period commencing on the date specified in the Certificate of Insurance and ending 8 years after such date.

The Structural Insurance Period may differ from the period shown above; if this is the case it will be detailed in the Certificate of Insurance. It is important that the Certificate of Insurance is read in conjunction with the Policy.

Subrogation

The legal right of the insurer to recover its loss from a third party.

Sum Insured

This refers to the total cost of rebuilding the property from scratch.

Surveyor

The party appointed on behalf of the Insurer to carry out checks and inspections solely on behalf of the Insurer.

Technical Manual

The functional requirements and performance standards issued to the Developer by One Guarantee Limited and in force at the time when technical information relating to the New Development is first submitted to the Surveyor.

Warranty Provider

The organisation or company responsible for issuing and administering the building warranty (also known as a structural warranty, new homes warranty, new build warranty). Some of the leading warranty providers include NHBC, Premier Guarantee, Build Zone & ICW.