Structural Warranty Glossary

Building Control

It is a function that ensures that building work undertaken complies with Building Regulations (England and Wales), Building Standards (Scotland) and associated legislation.

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 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.

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.

Defect

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

Defects Liability Period

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.

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.

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.

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.

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.

Practical Completion

The point at which a construction project is complete.

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.

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.

Warranty Provider

The organization 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, BuildZone & ICW.