Glossary of Key Terms

Builder: The person, firm or company who is responsible for building a home

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: The Building Regulations (England and Wales) or Building Standards (Scotland) are a set of standards for the design and construction of new and/or altered buildings.

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

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: Those parts of a multi-occupied building for which the Insured is legally obliged to contribute for the cost and upkeep with the owners of other parts of such building or by way of contribution to the Management Company.

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: A failure to comply with a functional requirement in the Technical Manual in respect of the construction of the Unit. Failure to follow the performance standards and/or guidance supporting the functional requirements does not itself amount to a Defect, as it may be possible to achieve the recommended performance in other ways. For any contract insured under a Policy relating to the conversion, refurbishment or renovation of a New Development the definition of Defect shall only be deemed to include any of the works constructed or installed by the Builder and/or Developer.

Defects Insurance Period: 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 three years from such date, or two 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 you paid the builder as part payment for the purchase price of a home.

Developer: Any person, sole trader, partnership, company or other organisation who or which is registered with One Guarantee and 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.

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: The Certificate issued by the Inspector following completion of the Building Control function for a Unit at the New Development.

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.

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.

Purchaser: For Section 1: the person who has paid a deposit for the Unit to the Developer and who has received an Initial Certificate showing that cover under Section 1 is applicable.

For Sections 2, 3, 4 and 5: the owner acquiring a freehold or leasehold interest, or their successors in title, or any mortgagee in possession or lessor and for whom a Certificate of Insurance has been issued for the Unit showing that the relevant cover under those sections is applicable.

The term Purchaser excludes the Developer (or the Developer’s mortgagee in possession), Builder, any relatives or associated companies or anyone having an interest in the construction or sale of the Unit, unless otherwise confirmed in writing by the Administrator.

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 New Residential Housing Unit / Commercial Property.

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 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 nine years from such date, or eight 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 eight 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.

Surveyor: The party appointed by One Guarantee on behalf of the Insurer who carries out checks and inspections solely on behalf of the Insurer and who, prior to the issue of the Certificate of Insurance for the Unit, issues a Certificate of Approval.

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.