What’s the difference between Site Insurance and Structural Warranty?

A Site Insurance policy covers the works in progress during your self-build project, this includes Tools, Equipment, Plant, Building products, Storm Damage, Vandalism and Liability. If you have the misfortune to suffer theft, have a fire or flood for example, then by taking out a Site Insurance policy, you are covered. A Structural Warranty is something to get in place as the project ends and is complete. It will provide you with a 10-Year Structural Warranty cover against aspects such as design defects, sub-standard weather-proofing, and any materials and components of the structure that cause significant damage.

Site Insurance is fundamentally important when you invest money into property development, especially as the sums tend to be five or six figures. Whether your project is a Conversion, Renovation, Extension or a New Build you will invariably need comprehensive protection for the new works, existing structure (if there is one) and the rest of the site.

You must protect the existing structure and all the new work against such losses as fire, theft, flood, storm damage, vandalism and accidental damage.

We recommend that you don’t just rely on your standard building insurance to cover the cost of any loss as, often, they will not pay out on a loss involving a property under development. Our self-build Insurance policy will give you the cover you need.

A Structural Warranty is important as most lenders will probably require a warranty as part of the lending criteria. If your circumstances change and you need to sell the property in the next 10 years, you will find it likely that your prospective purchaser's lender will require a Structural Warranty on the property before releasing any money.

Do not rely solely on an architect's certificate, as this will only provide cover in the event you are able to establish negligence by the architect, which will be covered under their professional indemnity insurance (but only for a period of 6 years) and it will not cover Workmanship or Defective Materials.

Still got questions? Contact us today and one of our experts can provide further advice and guidance.

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